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Crypto Assets company executives will pay $10 million to settle SEC charges regarding the betting on TerraUSD.
[Crypto Assets company executives will pay $10 million to settle SEC's allegations regarding betting on TerraUSD] The founder of a defunct lending platform has agreed to pay over $10.5 million to the U.S. SEC to settle allegations that he misappropriated investor funds to purchase the collapsed stablecoin TerraUSD (UST). The SEC stated in an order released on Tuesday that the platform named MyConstant, founded by Huynh Tran Quang Duy (also known as Duy Huynh), falsely told customers that their funds would be invested in a loan matching service backed by Crypto Assets, offering a 10% return. However, the SEC alleges that Huynh actually misappropriated $11.9 million of client funds to purchase the stablecoin TerraUSD (UST), which is linked to the Terra blockchain and collapsed in mid-2022, leading to billions of dollars in evaporated value. MyConstant is one of several Crypto Assets-related companies affected by the Terra collapse, which is estimated to have evaporated $500 billion from the crypto market.