The creator of MyConstant, Huynh Tran Quang Duy, has agreed to pay over $10.5 million following a settlement with the U.S. Securities and Exchange Commission (SEC).
Settlement with SEC
Huynh Tran Quang Duy, also known as Duy Huynh, will return over $8.3 million to MyConstant customers, along with $1.5 million in prejudgment interest. He is also required to pay a civil penalty of $750,000 within 14 days, without admitting or denying the SEC's findings.
Financial losses of MyConstant
Founded in 2018, MyConstant claimed to offer returns of 6% to 10% by pooling and lending customer funds, but actually used $11.9 million to buy TerraUSD, which collapsed in 2022. According to the SEC, MyConstant raised over $20 million from 4,000 investors.
Issues with TerraUSD
TerraUSD, a stablecoin, became embroiled in controversy following a sharp decline in its price due to the complete collapse of the Terra ecosystem. Huynh also misappropriated approximately $415,000 of investor funds for personal use and incurred losses of $7.9 million on failed investments in TerraUSD.
Huynh's settlement with the SEC highlights the ongoing issues in the cryptocurrency sector and the need for regulation, especially in light of the events surrounding TerraUSD and other platforms that resulted in significant investor losses.
