SEC Settlement: $10.5M for TerraUSD Misuse for MyConstant
Crypto lenders dey face tighter rules after one big SEC settlement. MyConstant founder Huynh Tran Quang Duy agree to pay $10.5M for SEC settlement. E go return $8.3M, pay $1.5M for prejudgment interest, plus $750,000 civil penalty inside 14 days. MyConstant raise over $20M from 4,000 US investors for crypto loans wey get 6-10% yield. But, Duy waka use $415,000 for personal thing and put $11.9M inside TerraUSD (UST) through Anchor Protocol. When UST collapse for May 2022, near $8M customer money lost, wey make MyConstant shut down. One Fair Fund fit share recovered money to investors. This SEC settlement show how risky algorithmic stablecoins and crypto lending be and mean regulators go dey watch well well.
Bearish
Di tori wey SEC settle case for MyConstant founder show say regulatory wahala dey for algorithmic stablecoins like TerraUSD. Dis verdict fit make market vibez for UST and other same kain asset go low for short time. Traders fit reduce how dem take put mind for algorithmic stablecoins because dem dey fear regulatory gbege. For long term, dis case fit make dem bring tight controls, wey go reduce how DeFi strategies fit generate yield and go increase compliance cost. So, dis development dey put bearish pressure for UST and tokens wey relate to am.