MyConstant Founder Ordered to Pay $10M in SEC Settlement Over TerraUSD Debacle

The U.S. Securities and Exchange Commission has levied a $10 million penalty against Huynh Tran Quang Duy, founder of defunct crypto lending platform MyConstant, for misrepresenting investment risks and misallocating client funds. The settlement includes disgorgement and operational bans.

Nearly $8 million of investor capital evaporated when Huynh deployed $11.9 million into TerraUSD before its catastrophic collapse. The platform, which promised 6-10% yields on crypto-collateralized loans, pooled funds contrary to its peer-to-peer marketing claims.

MyConstant's 2022 shutdown left 4,000+ U.S. investors exposed. The case underscores regulatory scrutiny of yield-bearing crypto products following the Terra/Luna collapse, with the SEC emphasizing proper disclosures for pooled investment vehicles.