The SEC finalized a settlement ordering MyConstant founder, Huynh Tran Quang Duy, to pay over $10M for misusing investor funds and making false claims, amid broader regulatory actions against the platform.
The SEC finalized a settlement with MyConstant founder Huynh Tran Quang Duy, ordering him to pay over $10 million in penalties and restitution for misusing investor funds. Operating as Const LLC since 2018, the peer-to-peer lending platform raised over $20 million from more than 4,000 investors by promising high-yield, low-risk crypto lending services. Huynh diverted $11.9 million to purchase TerraUSD (UST), an algorithmic stablecoin, and misused approximately $415,000 for personal expenses, leading to nearly $8 million in losses when UST collapsed. A prior cease-and-desist order by California regulators forced MyConstant to pause withdrawals and place its remaining assets in a trust. Under the settlement, Huynh must pay $8.3 million in disgorgement, $1.5 million in prejudgment interest, and a $750,000 civil penalty, and he is barred from serving as an officer or director.