SEC Settlement Suggests MyConstant Founder May Face Challenges After Misusing Investor Funds and Misleading Claims
Main Idea
MyConstant's founder, Huynh Tran Quang Duy, has been ordered to pay over $10 million in penalties by the SEC for misusing investor funds and making misleading claims about the platform's operations.
Key Points
1. Huynh Tran Quang Duy misappropriated approximately $415,000 for personal use and used $11.9 million of investor funds to purchase TerraUSD (UST), contrary to MyConstant's stated business model.
2. The SEC ordered Huynh to pay $8.3 million in disgorgement and barred him from serving as an officer or director of any publicly registered company.
3. MyConstant, a peer-to-peer lending platform founded in 2018, claimed to offer high-yield investment opportunities through crypto-collateralized loans targeting U.S. investors.
4. The Department of Financial Protection and Innovation issued a cease-and-desist order against MyConstant in December 2022 for violating securities laws.
5. The SEC may establish a Fair Fund to distribute recovered funds to affected investors.
Description
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