A U.S. judge ruled that a pastor defrauded investors in a $3 million cryptocurrency scheme

ChainCatcher news, according to Decrypt, the Colorado Securities Regulatory Authority stated on Tuesday that the Denver District Court recently found Pastor Eli Regalado and his wife guilty of fraud, ordering them to repay $3.39 million to investors.

The court determined that they violated securities laws by issuing INDXcoin and Sumcoin tokens through their church, illegally raising funds from at least 596 investors. The ruling shows that the Regalado couple claimed "God" instructed them to create, sell, and "sow" INDXcoin, and also formed a "prophet team" that held multiple conference calls each week to obtain the latest information about the token and exchanges, prayed during key decision-making moments, and made suggestions based on "divine will," reinforcing a religious promotional framework, but this did not exempt them from scrutiny. Furthermore, they deposited investor funds into their own accounts, using at least $1.3 million for personal luxury expenses.