Cryptocurrency company executives will pay $10 million to settle SEC allegations of betting on TerraUSD

According to a report by Golden Finance, the founder of a bankrupt lending platform has agreed to pay over $10.5 million to the US SEC to settle allegations that it misappropriated investor funds to purchase the collapsed stablecoin TerraUSD (UST). In an order released by the SEC on Tuesday, it was stated that the platform, named MyConstant, had its founder Huynh Tran Quang Duy (also known as Duy Huynh) falsely claimed to customers that their funds would be invested in a cryptocurrency backed loan matching service, which would yield a 10% return. However, the SEC alleges that Huynh actually misappropriated $11.9 million of client funds to purchase the stablecoin TerraUSD (UST) linked to the Terra blockchain, which collapsed in mid-2022, causing billions of dollars to evaporate. MyConstant is one of several cryptocurrency related companies affected by the Terra crash, which is estimated to have evaporated $500 billion from the cryptocurrency market.