Golden Finance reports that the founder of a defunct lending platform has agreed to pay over $10.5 million to the U.S. SEC to settle allegations that he misappropriated investor funds to purchase the collapsed stablecoin TerraUSD (UST). In an order issued by the SEC on Tuesday, the platform named MyConstant and its founder Huynh Tran Quang Duy (also known as Duy Huynh) falsely told customers that their funds would be invested in a cryptocurrency-backed loan matching service that would yield a 10% return. However, the SEC alleges that Huynh actually misappropriated $11.9 million of customer funds to buy the stablecoin TerraUSD (UST), which is pegged to the Terra blockchain and collapsed in mid-2022, resulting in billions of dollars evaporating. MyConstant is one of several cryptocurrency-related businesses affected by the Terra collapse, which is estimated to have wiped out $500 billion from the crypto market.

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