PANews August 6 news, 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 collapsed lending platform MyConstant, has agreed to pay over $10.5 million to resolve accusations of misappropriating investor funds to purchase UST.
The SEC stated that from September 2020 to November 2022, MyConstant raised over $20 million from more than 4,000 investors, claiming the funds were used for low-risk cryptocurrency loan matching services with returns of 6% to 10%. However, Huynh misappropriated $11.9 million of client funds to purchase UST and also misappropriated about $415,000 for personal use. In May 2022, when the price of UST plummeted, he incurred losses exceeding $7.9 million on his investments. To cover up the facts, he falsely assured investors of the safety of their funds and fabricated loan summary information. In mid-November 2022, MyConstant ceased operations due to the collapse of multiple crypto companies. Currently, Huynh is required to pay over $8.3 million in illegal gains, $1.5 million in interest, and a $750,000 fine, and he has neither admitted nor denied the allegations.
