MyConstant CEO Don Pay Fine $10M by SEC for TerraUSD Misconduct
Huynh Tran Quang Duy, wey be founder of crypto lending platform MyConstant, go pay $8.3 million for disgorgement, $1.5 million for prejudgment interest, plus $750,000 SEC penalty inside 14 days. From 2020 to 2022, MyConstant talk say dem go give low-risk, high-yield loans and join over 4,000 investors with $20 million collateralized crypto lending deals. But Duy secretly transfer nearly $12 million of customer money to buy TerraUSD, wey cause almost $8 million loss when stablecoin collapse for May 2022. Investors get fake loan performance reports and Duy also misuse about $415,000 for personal expenses. The SEC settlement get consent say make no repeat violation, even though no wrongdoing dey admitted. This case show say regulators dey watch crypto lending firms closely and the risk wey dey for opaque fund management.
Bearish
Dis SEC penalty dey show sey regulatory bodies dey watch crypto lending sector well well, e dey make investors and traders no too trust am again. Similar crackdown dem wey happen for places like Celsius and Voyager don make people dey rush sell their assets, e also make people no too get interest for lending products, and e dey make prices drop for short term. Even though strong compliance fit help the market for long term, the immediate thing wey e mean be sey traders go dey calculate risk again, fit reduce how much dem dey put for lending platforms, and dem go start to like safe assets pass. As enforcement actions still dey go on, e go still dey affect how people dey feel and how much money dey move for crypto markets.