The founder of the defunct crypto lending platform MyConstant, Huynh Tran Quang Duy, has agreed to a $10.5 million settlement due to violations of U.S. securities laws.
Information about MyConstant
MyConstant raised over $20 million from more than 4,000 investors between September 2020 and November 2022, promoting its services as secure and profitable with funds being pooled for crypto-backed loans.
Details of the Case Against Huynh Tran Quang Duy
According to the SEC, Huynh misused $11.9 million of customer funds to buy TerraUSD, leading to significant financial losses. He reportedly lost over $7.9 million during the May 2022 market crash and misappropriated approximately $415,000 for personal use.
Consequences and Future Events
The SEC’s settlement requires Huynh to pay more than $8.3 million in disgorgement, $1.5 million in prejudgment interest, and a civil penalty of $750,000. While he neither admitted nor denied the charges, he agreed to return funds to affected investors. MyConstant ceased operations in November 2022, returning $1.8 million to investors and transferring its remaining assets into a creditor trust.
The settlement between Huynh Tran Quang Duy and the SEC highlights the significance of adhering to regulations in the crypto investment sector and protecting investor rights.
