Denver Pastor Defrauds Investors in Crypto Scheme Worth $3M
A Denver pastor and his wife have been found guilty of defrauding nearly 600 investors in a cryptocurrency scheme connected to their church. The Colorado District Court ruling, delivered by Judge Heidi Kutcher, determined that Eli and Kaitlyn Regalado violated state securities laws by misleading investors through tokens called INDXcoin and Sumcoin. The couple now faces a mandate to repay $3.39 million to their victims.
The Rise and Fall of INDXcoin
The Regalados marketed INDXcoin as a religiously driven cryptocurrency, claiming that they were guided by divine revelations in its creation and promotion. Court documents show that they even formed a “Prophetic Team” to provide spiritual guidance on key decisions. However, despite these claims, INDXcoin was classified as a security under the Colorado Securities Act and was found to have no tangible market value.
The couple assured investors that INDXcoin was safer than other cryptocurrencies and promised guaranteed profits. In reality, the token was not listed on legitimate exchanges and was essentially worthless. Among other dubious transactions, evidence revealed that the couple misused investor funds for personal luxuries, including vacations, luxury handbags, and cars.
The Legal Fallout
The court’s recent decision is just one facet of the Regalados’ legal troubles. In a separate criminal case, they face 40 felony charges, including racketeering and securities fraud. If convicted, these charges could result in prison time. The court has also barred the couple from participating in securities trading for 20 years, in addition to ordering financial restitution.
Crypto Investment: A Word of Caution
This case highlights the importance of due diligence when investing in cryptocurrency. Always verify whether the crypto project you are considering is registered, has legitimate audits, and is traded on reputable exchanges. For those seeking a reliable wallet to manage their crypto assets, consider the Ledger Nano X, a trusted hardware wallet that offers advanced security features to protect your investments.
Final Thoughts
The story of the Regalados serves as a sobering reminder of the risks associated with unregulated investments. While cryptocurrency continues to be an avenue for financial growth, it is crucial to separate legitimate opportunities from schemes that promise returns too good to be true.
