Crypto exec to pay $10M to settle SEC claims over betting on TerraUSD

The founder of the lending firm MyConstant agreed to pay over $10 million to the SEC to settle claims he stole millions to buy the now-collapsed Terra stablecoin.

The creator of a now-defunct lending platform has agreed to pay over $10.5 million to settle US Securities and Exchange Commission claims that he took 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 (UST), a stablecoin tied to the Terra blockchain that collapsed in mid-2022 and wiped out billions of dollars.