MyConstant founder to pay $10 million to settle SEC charges that he misappropriated investor funds to buy UST

PANews reported on August 6 that according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) disclosed that Huynh Tran Quang Duy (also known as Duy Huynh), the founder of the defunct lending platform MyConstant, agreed to pay more than US$10.5 million to resolve allegations of misappropriating investor funds to purchase UST.

The SEC alleges that between September 2020 and November 2022, MyConstant raised over $20 million from over 4,000 investors, claiming the funds would be used for a low-risk cryptocurrency loan matching service with returns of 6%-10%. However, Huynh misappropriated $11.9 million of client funds to purchase UST and used approximately $415,000 for his own use. In May 2022, UST prices plummeted, resulting in losses exceeding $7.9 million on his investments. To conceal the facts, he falsely assured investors of the security of their funds and fabricated loan summary information. In mid-November 2022, MyConstant ceased operations due to the collapse of several crypto companies. Huynh is now ordered to pay over $8.3 million in ill-gotten gains, $1.5 million in interest, and a $750,000 fine, without admitting or denying the charges.