Huynh Tran Quang Duy, the founder of peer-to-peer lending platform MyConstant, has been ordered by the U.S. Securities and Exchange Commission (SEC) to pay over $10 million in penalties for misappropriating investor funds and making misleading statements about the platform’s operations.
The SEC found that Duy misused approximately $415,000 for personal expenses. He also diverted approximately $11.9 million of investor capital to purchase the stablecoin TerraUSD (UST), which directly contradicted MyConstant’s stated business model offering crypto-collateralized loans.
As part of the settlement, Huynh Tran Quang Duy must pay disgorgement of $8.3 million and has been permanently barred from serving as an officer or director of any public company.
Founded in 2018, MyConstant targeted U.S. investors with promises of high-yield returns through its peer-to-peer loan platform. Prior to the SEC’s action, the California Department of Financial Protection and Innovation (DFPI) issued a cease-and-desist order against the platform in December 2022 for violating state securities laws.
The SEC indicated that any funds recovered may be distributed to affected investors through a potential Fair Fund.