A Colorado pastor and his wife are in hot water this week after allegedly making away with millions of dollars raised through a crypto token they marketed to devout Christians—and claimed was made because of God’s instruction.

The Denver-area couple, pastor Eligio “Eli” Regalado and his wife Kaitlyn, reportedly raised some $3.2 million through sales of INDXcoin, a crypto token that they issued through an online church, Victorious Grace.

Earlier this week, Colorado’s Securities Commissioner sued the couple, claiming they fraudulently deceived investors and illegally sold securities without proper registration. On Thursday, a Colorado judge froze the assets of Victorious Grace Church based on those allegations.

According to legal filings made by the state, the Regalados claimed that INDXcoin was pegged to an index of cryptocurrencies, and backed by enough assets to secure that peg. In reality, the Colorado Securities Commission alleges, the coin was backed by almost nothing—save God’s word.

“Defendant Eli leveraged the potential investors’ faith,” the complaint said. “He stated that their investments’ success was guaranteed by God.”

From the start, the Regalados insisted that INDXcoin was not a security offering, but instead a utility coin, and therefore exempt from securities regulations. According to leg

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Author: Sander Lutz

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