Crypto Lending CEO Faces $10M SEC Penalty Over TerraUSD Gamble
The post Crypto Lending CEO Faces $10M SEC Penalty Over TerraUSD Gamble appeared on BitcoinEthereumNews.com. SEC filings reveal misappropriation of investor funds. False reports on loan performance were given to people who were investors. Settlement involves disgorgement, penalties, and an operation ban. A former boss of crypto lending is spending money to resolve SEC charges. Huynh Tran Quang Duy, the owner of the company MyConstant, has agreed to pay over 10 million. The SEC charged him with the misappropriation of the investments of investors into risky bets with TerraUSD. In the period between 2020 and 2022, the Duy platform offered an attractive loan matching service with the potential returns of up to 10 percent to investors with a low-risk promise. However, close to 12 million dollars of customer funds were privately transferred to buy TerraUSD stablecoin. Losses exceeded almost $8 million when TerraUSD went into a nosedive in May 2022. How $20 Million Went From Loans to TerraUSD Gambling Huynh received more than 4,000 investors with an interest of over 20 million in his now-defunct MyConstant. The pitch? The collateralized crypto loans at 150 percent value of the loans, which were, allegedly, low-risk and high-yield. Rather, Duy shifted money to his crypto wallets and purchased TerraUSD without the approval of the investors. According to the SEC, Duy was also misappropriating the funds to the tune of about $415000 in the same period to spend on himself. Meanwhile, investors received false assurances. MyConstant even used the wrong loan summary reports that indicated that it had continued to lend well when it had not. SEC’s Swift $10M Blow to Crypto Lending Misconduct Duy resolved the case by accepting disgorgement of 8.3 million dollars. Topped off is prejudgment interest of 1.5 million and the civil penalty of 750,000 to be paid within 14 days. The settlement has no acknowledgment of wrongdoing but has a…
The post Crypto Lending CEO Faces $10M SEC Penalty Over TerraUSD Gamble appeared on BitcoinEthereumNews.com.
SEC filings reveal misappropriation of investor funds. False reports on loan performance were given to people who were investors. Settlement involves disgorgement, penalties, and an operation ban. A former boss of crypto lending is spending money to resolve SEC charges. Huynh Tran Quang Duy, the owner of the company MyConstant, has agreed to pay over 10 million. The SEC charged him with the misappropriation of the investments of investors into risky bets with TerraUSD. In the period between 2020 and 2022, the Duy platform offered an attractive loan matching service with the potential returns of up to 10 percent to investors with a low-risk promise. However, close to 12 million dollars of customer funds were privately transferred to buy TerraUSD stablecoin. Losses exceeded almost $8 million when TerraUSD went into a nosedive in May 2022. How $20 Million Went From Loans to TerraUSD Gambling Huynh received more than 4,000 investors with an interest of over 20 million in his now-defunct MyConstant. The pitch? The collateralized crypto loans at 150 percent value of the loans, which were, allegedly, low-risk and high-yield. Rather, Duy shifted money to his crypto wallets and purchased TerraUSD without the approval of the investors. According to the SEC, Duy was also misappropriating the funds to the tune of about $415000 in the same period to spend on himself. Meanwhile, investors received false assurances. MyConstant even used the wrong loan summary reports that indicated that it had continued to lend well when it had not. SEC’s Swift $10M Blow to Crypto Lending Misconduct Duy resolved the case by accepting disgorgement of 8.3 million dollars. Topped off is prejudgment interest of 1.5 million and the civil penalty of 750,000 to be paid within 14 days. The settlement has no acknowledgment of wrongdoing but has a…
What's Your Reaction?
