A crypto token allegedly issued by the Church is backed by nothing but the word of God.

A Colorado pastor and his wife are in hot water this week after allegedly embezzling millions of dollars raised through a crypto token they marketed to devout Christians — and they say it was God-directed.

Denver-area couple Pastor Eligio “Ellie” Regalado and his wife Kaitlyn reportedly raised $3.2 million in the sale of INDXcoin.

Earlier this week, Colorado's securities commissioner charged the couple with defrauding investors and illegally selling unregistered securities. On Thursday, a Colorado judge froze the assets of Victoria's Grace Church based on those allegations.

According to legal filings with the state, Regalados said INDXcoin is pegged to an index of cryptocurrencies and is backed by enough assets to maintain that peg. In fact, the Colorado Securities Commission said the coin was not backed by anything – excluding the Word of God.

“Defendant Eli took advantage of the trust of potential investors,” the complaint said. He explained that the success of their investment was guaranteed by God.

From the beginning, Regalados insisted that INDXcoin is not a security offering, but rather a utility coin and therefore exempt from security regulations. According to legal documents, the couple tried to invoke the power of more than money when several experts rejected that claim and told Regalados that INDXcoin was indeed a security offering. Hawaii experiment.

“[We] Spent a lot of time working with world experts,” Eli Regalado posted on a community forum for INDXcoin holders last May. “[They said] What Eli and Caitlin are doing is for security, but God says, ‘No, it's a utility coin.'

Regalados is also a regulated platform where INDXcoin can only be exchanged for USD through the government's wealth exchange, and Colorado regulators regularly shut down to avoid a bank run. Eli Regalado is reported to be telling them that God is telling them when some investors are starting to become wary of INDXcoin's lack of returns and are considering withdrawing completely. him That everyone should HODL.

“The defendant then went on to tell the investors that God was telling them to tell the investors.”[s]Stay where you are. Stay in INDXcoins. Stay with the one I told you to go. I am going to make way,” the complaint reads.

Regalados eventually shut down the kingdom's wealth exchange last year after saying there weren't enough active “stakeholders” to keep it running. The couple then told INDXcoin owners that God told them not to ask questions about everyone investing in the coin.

In the process of raising more than $3 million, the Regalados reportedly pocketed $1.3 million, which went toward luxury handbags, cosmetic dentistry, snowmobiling adventures, au pairhome renovations, luxury vacations and other items.

Decrypt He reached out to Regalados but did not get an immediate response. as if Video Posted to INDXcoin Community site On Friday night, Eli Regalado publicly addressed the situation for the first time.

“The allegations are that Kaitlyn and I pocketed $1.3 million, and I want to come out and say those allegations are true,” Regalado said. “But then 1.3 dollars [million]half a million dollars went to the IRS, and a few hundred thousand dollars went to the home improvement the Lord told us to do.

Regalado also said that when God approached him about creating INDXcoin, Regalado was initially concerned about the token's liquidity—and God responded, “Trust me,” according to the pastor.

The couple faces a hearing on Jan. 29 regarding the Colorado Securities Commissioner's request for a preliminary injunction.

At the hearing, state officials will expand on arguments about how the Regalados violated state safety laws. Whether the prosecutors can prove that God did it is not Talking about utility coins to Regalados is another matter.

Edited by Andrew Hayward.