- A Colorado pastor and his wife are facing civil allegations of securities fraud for promoting a religious-themed cryptocurrency.
- State regulators claim the couple collected $3.4 million from over 300 investors between June 2022 and April 2023.
- Investigators allege the funds were partially used for personal luxury expenses instead of legitimate business purposes.
- Defendants argue that they acted in good faith and believed the cryptocurrency was a “utility coin” not requiring registration.
- The court has not yet issued a ruling; no criminal charges have been filed as of publication.
Eli Regalado and his wife, Kaitlyn Regalado, founders of the online-only Victorious Grace Church and creators of INDXcoin, appeared in a Colorado civil court where state officials accuse them of deceiving Christian investors. The case focuses on allegations that the Regalados promised “divine wealth” from a cryptocurrency that state regulators say is worthless.
According to the Colorado Division of Securities, the couple raised about $3.4 million from more than 300 people over a ten-month period. State Securities Commissioner Tung Chan is seeking $3.4 million in restitution, an asset freeze, and a permanent injunction. The agency alleges the Regalados misused investor funds for personal items, including a Range Rover, travel, luxury meals, jewelry, home renovations, and payments to the IRS.
Forensic accountant Christina Mallard, testifying on behalf of state officials, found that more than $1.3 million went toward non-business expenses. “We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” the Colorado Securities Commissioner’s office said in a statement released in January.
The Regalados answered that they believed INDXcoin was a utility coin—meaning it offered a specific use within a platform and did not count as a security. Court filings show the couple claimed they relied on legal guidance and information presented in their whitepaper. They also blamed technical problems with a third-party developer for the platform’s failure, rather than deception. They stated, “The Regalados did not intend to defraud investors,” and said they acted based on their religious mission.
The legal process began in January, when Denver District Court Judge David Goldberg ordered a freeze of the couple’s assets. The state later expanded its complaint to include additional individuals who allegedly helped market the coin without proper credentials. Among those named are Regalado’s father, brother-in-law, and televangelist Jesse Duplantis, who reportedly received commissions as high as $27,000.
A spokesperson for the Colorado Division of Securities declined comment, citing the ongoing case. Although Eli Regalado has previously served prison time for car theft, authorities have not filed criminal charges related to INDXcoin as of publication. The court’s decision is expected in the coming weeks under Colorado trial procedure.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Theta EdgeCloud Hybrid Beta Launches, Ushering in Decentralized AI
- Bitcoin Surges 10% as Middle East Tensions Ease, Hits $108,200
- Prediction Market Kalshi Hits $2B Valuation in $185M Series C Round
- ESMA Proposes Major Reforms to Make EU DLT Pilot Regime Permanent
- Russian Darknet Drug Market Launches MoriCoin Memecoin on Solana
