MyConstant Founder Fined $10M for TerraUSD Fund Misuse

Cryptos: 21,330
Exchanges: 1,953
Market Cap: $3.76T 1.38%
24h Vol: $241,145,192,578 4.83%
Dominance: BTC: 60.5% ETH: 11.8%
Gas: 0 GWEI

Connect

Crypto News Regulation

MyConstant Founder Fined $10 Million for Betting Customer Funds on TerraUSD

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 06, 2025

Key Takeaways

SEC said MyConstant’s founder used $11.9 million in user funds to buy TerraUSD, which led to $7.9 million in losses after its collapse;
Huynh also allegedly spent $415,000 on personal use and sent fake updates to calm investors after the losses;
He will repay over $8.3 million, plus $1.5 million interest, and pay a $750,000 fine in a settlement with no admission of guilt.

Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥

MyConstant Founder Fined $10 Million for Betting Customer Funds on TerraUSD

BITDEGREE IN YOUR SOCIAL FEED

The US Securities and Exchange Commission (SEC) has reached a settlement with Huynh Tran Quang Duy, also known as Duy Huynh, the founder of the now-closed lending platform MyConstant.

According to the SEC's order released on August 5, Huynh misused investor funds by purchasing the stablecoin TerraUSD with money that was supposed to be part of a low-risk loan program.

Between 2020 and 2022, MyConstant raised more than $20 million from over 4,000 users. The platform offers returns of up to 10% and describes the investment as low risk.

What is DeFi in Crypto? (Explained with Animations)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

However, the SEC said Huynh took $11.9 million from those funds and used it to buy TerraUSD, a token that lost nearly all its value during its collapse in May 2022. That decision led to losses of around $7.9 million.

In addition to the TerraUSD purchase, Huynh allegedly used $415,000 of customer money for personal expenses. After the losses, the SEC claims he tried to reassure users by sending misleading updates that included made-up loan data.

To settle the charges, Huynh has agreed to repay more than $8.3 million, along with $1.5 million in interest. He must also pay a civil fine of $750,000 within two weeks.

As part of the settlement, he neither admitted nor denied the SEC’s findings.

Recently, Upbit $1.58B and Bithumb’s $816M new lending tools sparked legal and safety concerns from South Korean regulators. What happened? Read the full story.