Huynh Tran Quang Duy, founder of crypto lending platform MyConstant, will pay over $10 million to settle U.S. Securities and Exchange Commission allegations that he misappropriated investor funds to purchase TerraUSD (UST) before its catastrophic collapse. According to the SEC order, Huynh diverted $11.9 million of client assets – nearly half the $20 million raised from 4,000+ investors between 2020-2022 – into the algorithmic stablecoin despite marketing MyConstant as a low-risk, crypto-collateralized lending service offering 6-10% annual returns.
The SEC found Huynh violated securities laws by fabricating loan summaries and falsely assuring investors of platform stability even after UST's May 2022 depegging event erased nearly $8 million of customer funds. Settlement terms include $8.3 million in disgorgement, $1.5 million in prejudgment interest, and a $750,000 civil penalty. Huynh is permanently barred from corporate leadership roles and must pay within 14 days without admitting guilt.
MyConstant halted operations in November 2022 following UST's collapse and prior regulatory actions, including a California cease-and-desist order for offering unregistered securities. The platform has returned just $1.8 million to investors to date, with remaining assets (under $10 million) held in a creditor trust. The SEC may establish a Fair Fund for further victim restitution.