A Denver pastor and his wife face the music after a crypto scheme promising heavenly returns left investors in financial purgatory. Get the lowdown on this bizarre case!
Denver Judge Slams Down on Crypto Scheme: A Divine Deception?
In the wild world of crypto, sometimes things get a little…too creative. A recent case involving a Denver pastor, his wife, and a cryptocurrency scheme is a prime example. Let's dive into the details of this bizarre situation.
The Alleged 'God-Inspired' Crypto
Eli and Kaitlyn Regalado, a Denver-based pastor couple, found themselves in hot water after promoting INDXcoin, a cryptocurrency they claimed was divinely inspired. According to court documents, the Regalados told investors that “God” instructed them to create, sell, and sow the token. They even assembled a “Prophetic Team” to offer spiritual guidance on INDXcoin and its crypto exchange, Kingdom Wealth. Sounds legit, right?
The Legal Hammer Falls
Turns out, not so much. Last Friday, a Denver District Court judge ruled that the Regalados violated state securities laws and must repay $3.39 million to investors. Judge Kutcher determined that INDXcoin qualified as a security and that the couple misrepresented its value, promising profits while failing to disclose the token's inability to be sold on established exchanges. Ouch.
“INDXcoin was worthless because no one wanted to buy it,” the court stated. Adding insult to injury, the Regalados allegedly used at least $1.3 million of investor funds for personal expenses, including luxury handbags, jewelry, vacations, and home renovations. Talk about a spending spree!
Criminal Charges Loom
But wait, there's more! In a separate criminal case from July, a Denver grand jury indicted the Regalados on 40 felony counts, including racketeering, securities fraud, and theft. While the civil ruling orders restitution and a 20-year securities ban, the criminal case could lead to prison time.
The Broader Crypto Landscape: A Word of Caution
This case highlights the importance of due diligence in the crypto world. While the Regalados’ religious framing is unique, the underlying scam is all too common. Promising guaranteed returns and leveraging hype are red flags. As Tung Chan, the state’s securities commissioner, put it, “The Regalados are 21st-century false prophets who leveraged the new and promising technology of cryptocurrencies to run an old-fashioned scam, victimizing their own congregants and others.”
And, as a cautionary tale, look no further than Kanye West's YZY token. Launched in 2025, it quickly became embroiled in controversy over market manipulation and insider trading, highlighting the risks associated with celebrity-backed meme coins. The token's value plummeted after an initial surge, leaving many investors with significant losses. The YZY case underscores the potential pitfalls of investing in speculative crypto assets, especially those promoted by celebrities.
A Final Thought
So, what's the takeaway? Be skeptical, do your research, and remember: if it sounds too good to be true, it probably is. And maybe, just maybe, leave the investment advice to the professionals, not the prophets. Investing in crypto can be a wild ride, but let's try to keep it (mostly) grounded in reality, folks!
