Huynh Tran Quang Duy, founder of the lending firm MyConstant, has agreed to pay over $10.5 million to settle SEC claims alleging he misappropriated investor funds to purchase TerraUSD, a stablecoin that collapsed in mid-2022. The SEC's investigation revealed that Huynh used $11.9 million of customer money for this purpose, misrepresenting the investment as a low-risk loan matching service with high returns. Huynh is required to pay back $8.3 million plus $1.5 million in interest to MyConstant customers, and a separate $750,000 civil penalty within 14 days. MyConstant had raised over $20 million from investors, promising returns of 6-10% from pooled crypto-backed loans. The firm ceased operations in November 2022 amidst the fallout from Terra’s collapse, which significantly impacted the broader crypto market. This settlement marks the first restitution for MyConstant clients affected by the disaster.

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