Market Cap: $4.176T -0.50%
Volume(24h): $119.1028B -44.94%
  • Market Cap: $4.176T -0.50%
  • Volume(24h): $119.1028B -44.94%
  • Fear & Greed Index:
  • Market Cap: $4.176T -0.50%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top News
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
bitcoin
bitcoin

$122288.232522 USD

0.16%

ethereum
ethereum

$4480.662914 USD

-0.22%

xrp
xrp

$2.962747 USD

-2.32%

tether
tether

$1.000120 USD

-0.05%

bnb
bnb

$1145.654223 USD

-2.07%

solana
solana

$227.105217 USD

-1.67%

usd-coin
usd-coin

$0.999548 USD

-0.02%

dogecoin
dogecoin

$0.250875 USD

-2.04%

tron
tron

$0.340654 USD

-0.49%

cardano
cardano

$0.837968 USD

-2.52%

hyperliquid
hyperliquid

$48.960449 USD

0.06%

chainlink
chainlink

$22.049280 USD

-1.33%

ethena-usde
ethena-usde

$1.000404 USD

0.02%

sui
sui

$3.586212 USD

0.20%

avalanche
avalanche

$29.894916 USD

-4.18%

Cryptocurrency News Articles

Judge Delivers $3.34M Blow in Fraudulent Crypto Scheme: The INDXcoin Debacle

Sep 18, 2025 at 11:30 am

A Colorado court slams Indxcoin founders with a multi-million dollar fraud judgment after a hype-fueled token collapse exposed lavish misuse of investor funds.

Judge Delivers $3.34M Blow in Fraudulent Crypto Scheme: The INDXcoin Debacle

In the wild world of crypto, where fortunes are made and lost in the blink of an eye, a recent case out of Colorado serves as a stark reminder of the risks involved. A judge has delivered a $3.34 million blow to the founders of Indxcoin, a fraudulent token scheme that targeted Christian communities and resulted in the lavish misuse of investor funds.

The Indxcoin Saga: A Crypto Tale Gone Wrong

The Colorado Division of Securities announced that Denver District Court Judge Heidi L. Kutcher ruled against Indxcoin LLC and its founders, Eli and Kaitlyn Regalado, for committing securities fraud. The judgment, a hefty $3.34 million, comes after a trial that exposed the couple's deceptive practices and misuse of investor funds. The civil action was initiated in January 2024, with Securities Commissioner Tung Chan filing fraud charges against the Regalados for developing and promoting a worthless digital token.

Misleading Investors: Promises and Prayers

Evidence presented at trial revealed a pattern of extensive misrepresentations to potential investors. The Regalados, lacking technical expertise and armed with an auditor’s report that rated their coin at zero out of 10 for security, assured buyers of stability and profit potential. They even launched their own trading venue, the Kingdom Wealth Exchange, which collapsed after a single day of operation. The marketing and creation story for INDXcoin claimed “that ‘God’ told them to create, sell, and sow” the token.

Lavish Spending: Investor Funds as a Personal Piggy Bank

What truly shocked the public was the revelation that investor money was used to cover personal expenses. Eli Regalado admitted in a viral video that the funds were used for renovations and other personal indulgences. Prosecutors detailed how the Regalados used investor money to fund a lavish lifestyle, including jewelry, luxury ski and yachting trips, designer clothes, dental work, and even a Range Rover. At least $1.3 million of investor funds went into personal expenses. There were no parameters on the amount he or Mrs. Regalado would spend with the investor money,

Legal Aftermath: Civil Judgment and Criminal Indictment

Beyond the civil ruling, a Denver grand jury indicted the couple on 40 criminal counts related to the same scheme. Commissioner Chan hailed the outcome as justice for victims and a reassurance for legitimate cryptocurrency projects that regulatory enforcement can safeguard small investors from fraud. The civil enforcement ruling ordered restitution and a 20-year securities ban, the criminal case could carry prison time if they are convicted.

A Word of Caution in the Crypto Wild West

This case serves as a cautionary tale in the often-unregulated world of cryptocurrency. It highlights the importance of due diligence and the need for investors to be wary of schemes that promise guaranteed returns or rely on religious endorsements. As the crypto market continues to evolve, regulatory bodies are stepping up their efforts to protect investors from fraud. The Indxcoin case demonstrates that even in the digital frontier, justice can prevail.

So, what's the takeaway? Always do your homework, and remember, if it sounds too good to be true, it probably is. After all, even divine intervention can't guarantee profits in the volatile world of crypto!

Original source:bitcoin

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Oct 05, 2025