In brief
- The couple raised funds from nearly 600 investors through INDXcoin and Sumcoin.
- Judge Heidi Kutcher found the tokens misrepresented as safe despite audit failures and no market value.
- A July grand jury indictment separately charged the Regalados with 40 felonies that could bring prison time.
A Colorado court has entered judgment against a Denver pastor and his wife after finding they defrauded hundreds of investors by selling crypto tokens created for their church.
The ruling, handed down last Friday in Denver District Court, found that Eli and Kaitlyn Regalado violated state securities laws and must repay $3.39 million, according to a statement from the Colorado Division of Securities posted Tuesday.
It follows a May bench trial where state attorneys said they raised funds from at least 509 INDXcoin investors and 87 Sumcoin investors. Decrypt reached out to the state securities regulator’s office for comment but did not immediately receive a response. Efforts were made to contact the Regalados and their church.
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Author: Vince Dioquino
