The founder of the collapsed crypto platform MyConstant has agreed to pay $10.5 million to settle allegations of misappropriating client funds. According to U.S. regulators, including the SEC, Frank Zhang misappropriated over $12 million, promising investors high returns from cryptocurrency lending. The platform ceased operations in 2023, leaving thousands of users without access to their assets. The investigation found that the funds were used for personal expenses, including a lavish lifestyle.
The agreement provides for the return of a portion of the lost amounts, but there will be no full compensation. Zhang pleaded guilty and avoided criminal prosecution in exchange for paying a fine. Experts call this yet another example of the risks in the unregulated crypto market. On X, users are actively commenting on the case, calling for stricter regulations for crypto companies, although some believe the punishment is insufficient.
This case highlights the importance of transparency and investor protection in the crypto industry. Stay tuned for news!
#CryptoFraud #MyConstantScam #SECRegulation #BlockchainSafety #MiningUpdates
**Subscribe to #MiningUpdates for the latest crypto market news!**