MyConstant’s founder, Huynh Tran Quang Duy, has been ordered to pay over $10 million for misusing investor funds and making false claims about his platform’s crypto lending services.
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Huynh Tran Quang Duy misused $11.9 million of investor funds, leading to significant losses.
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He faced penalties after the collapse of TerraUSD, which resulted in nearly $8 million in losses.
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MyConstant ceased operations in 2022, and the SEC settlement includes various restrictions.
MyConstant’s founder faces over $10 million in penalties for misusing investor funds in a failed crypto lending scheme. Learn more about the SEC’s actions.
| Details | Amount | Outcome |
|---|---|---|
| Misused Investor Funds | $11.9 million | Significant losses incurred |
| Penalties Ordered | $10 million | Settlement with SEC |
What is MyConstant?
MyConstant is a peer-to-peer lending platform founded in 2018 by Huynh Tran Quang Duy. It claimed to offer high-yield investment opportunities through crypto-collateralized loans, targeting U.S. investors.
Allegations against MyConstant and Huynh
The SEC found that Huynh misappropriated approximately $415,000 for personal use and used $11.9 million of investor funds to purchase TerraUSD (UST). This contradicted MyConstant’s stated business model.
Past Actions Against MyConstant
MyConstant had previously drawn attention from regulators, with the California Department of Financial Protection and Innovation issuing a cease-and-desist order in December 2022 for violating securities laws.
What’s Next for Huynh?
Huynh must pay $8.3 million in disgorgement and is barred from serving as an officer or director of any publicly registered company. The SEC may establish a Fair Fund to distribute recovered funds to investors.
Conclusion
The SEC’s settlement against MyConstant’s founder highlights the risks associated with crypto lending platforms. Investors should remain vigilant and informed about the operational integrity of such services.
Frequently Asked Questions
What are the penalties for Huynh Tran Quang Duy?
Huynh must pay over $10 million in penalties, including disgorgement and civil penalties, as part of the SEC settlement.
Why did MyConstant cease operations?
MyConstant ceased operations due to significant financial losses and regulatory scrutiny, leading to a halt in user withdrawals.
