Colorado Court Orders Restitution in Fraud Case Involving Religious Tokens

According to PANews, the Colorado securities regulatory authority announced on Tuesday that a Denver district court has found Pastor Eli Regalado and his wife guilty of fraud, ordering them to repay $3.39 million to investors. The court determined that the couple illegally raised funds from at least 596 investors through tokens issued by their church, INDXcoin and Sumcoin, in violation of securities laws. The judgment revealed that the Regalados claimed divine instruction to create, sell, and promote INDXcoin, forming a 'prophet team' that held multiple weekly conference calls to discuss the latest information about the token and exchanges. They made key decisions based on prayers and divine guidance, reinforcing a religious promotional framework, which did not exempt them from scrutiny. Furthermore, the couple was found to have deposited investor funds into their personal accounts, with at least $1.3 million spent on personal luxury expenses.