The US Securities and Exchange Commission (SEC) has reached a settlement with Huynh Tran Quang Duy, also known as Duy Huynh, the founder of the now-closed lending platform MyConstant.
According to the SEC’s order released on August 5, Huynh misused investor funds by purchasing the stablecoin TerraUSD with money that was supposed to be part of a low-risk loan program.
Between 2020 and 2022, MyConstant raised more than $20 million from over 4,000 users. The platform offers returns of up to 10% and describes the investment as low risk.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
Where to Trade Crypto: 3 Best Approaches Explained (Animated)
However, the SEC said Huynh took $11.9 million from those funds and used it to buy TerraUSD, a token that lost nearly all its value during its collapse in May 2022. That decision led to losses of around $7.9 million.
In addition to the TerraUSD purchase, Huynh allegedly used $415,000 of customer money for personal expenses. After the losses, the SEC claims he tried to reassure users by sending misleading updates that included made-up loan data.
To settle the charges, Huynh has agreed to repay more than $8.3 million, along with $1.5 million in interest. He must also pay a civil fine of $750,000 within two weeks.
As part of the settlement, he neither admitted nor denied the SEC’s findings.
Recently, Upbit
$1.76B
