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Crypto exec to pay $10M to settle SEC claims over betting on TerraUSD
The creator of a now-defunct lending platform agreed to pay more than $10.5 million to settle US Securities and Exchange Commission claims that he used investor funds to buy millions worth of the stablecoin TerraUSD before it collapsed.
Huynh Tran Quang Duy, also known as Duy Huynh, told customers of his firm, MyConstant, that their money would go into a loan matching service backed by crypto that would yield 10%, the SEC said in an order on Tuesday.
The agency claimed that in reality, Huynh used $11.9 million of his customers’ money to buy TerraUSD, a stablecoin tied to the Terra blockchain that collapsed in mid-2022 and wiped out billions of dollars in value.
MyConstant was one of several crypto-linked businesses hurt by Terra’s collapse, which is estimated to have flushed half a trillion dollars from the crypto market.
The company has faced regulatory action since late 2022, when California’s finance regulator accused it of violating the state’s securities laws and ordered it to cease operations.