Case summary
What happened
MyConstant offered a loan-matching service, crypto interest accounts, and fiat interest accounts. California regulators found that the company offered unlicensed loan-brokering and unqualified securities products. The SEC later found that the founder misrepresented the loan strategy, misappropriated part of investor funds, and used at least $11.9 million to purchase TerraUSD, producing major losses after UST collapsed. MyConstant ceased operations and customer withdrawals on 17 November 2022, announced an orderly liquidation, and entered customer litigation and settlement proceedings.
Customer result
Customer outcome
Claims ongoing
MyConstant had returned some funds after closing, but prior plan payments were later terminated. The court-authorized settlement site described a proposed liquidating trust and pro rata distributions subject to the settlement process. CYA does not treat the case as completed repayment or assign a customer-wide percentage.
- Estimated recovery
- No final universal recovery rate; the proposed class settlement described an expected net settlement of approximately $4 million for pro rata distribution, while earlier company-plan payments and possible SEC distributions remain separate.
- Repayment started
- —
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Unclear
Keep the platform-level classification unclear because custody, pooling, product terms, private-plan treatment, and settlement claims differed across products and customers.
- Affected product
- Loan Matching Service, Crypto-Lending Platform account, and Instant Access account
- Confidence
- High
MyConstant required customers to place funds into platform-managed products and pooled at least part of the Loan Matching Service funds. Public regulatory and settlement materials do not support one universal ownership classification for every product and customer claim.
Known unknowns
Uncertainty
The May 2019 launch date represents the approximate start of the Loan Matching Service identified by the SEC. Customer recoveries span prior private plan payments, a proposed class-settlement liquidating trust, and possible SEC distributions; no single final recovery percentage should be inferred. A currently resolving domain does not establish that the original lending service resumed operations.
Chronology
Historical record
MyConstant Loan Matching Service begins operating
MyConstant began offering an online loan-matching service in which customer funds were pooled and managed through the platform, alongside later crypto and fiat interest-account products.
The SEC describes the service as starting in or around May 2019; the first day of the month is used as an approximate sortable date.
MyConstant pauses deposits and customer withdrawals
MyConstant stopped processing deposits and investment requests and paused customer withdrawals while citing deteriorating crypto-market conditions and heavy withdrawals across lending and exchange platforms.
The halt was publicly acknowledged by California regulators and later described in the SEC administrative order.
MyConstant ceases normal operations
The platform ceased normal business operations on the same date as the withdrawal halt and remained inactive afterward.
This operational-end classification follows the SEC finding that MyConstant ceased operations in November 2022 and remained inactive.
MyConstant announces orderly liquidation plan
MyConstant informed customers that it intended to implement an orderly liquidation intended to maximize and accelerate customer recoveries.
This was a company-announced liquidation path rather than a conventional bankruptcy filing recorded by CYA.
California orders MyConstant to stop unlawful offerings
The California Department of Financial Protection and Innovation ordered CONST LLC to stop violations connected with its loan-brokering and interest-bearing crypto and fiat products.
The order followed the platform halt and did not itself establish a universal customer recovery outcome.
Court grants preliminary approval to customer class settlement
A Riverside County court granted preliminary approval to a proposed class settlement built around a liquidating trust, pro rata customer distributions, and an additional payment by MyConstant's founder.
The settlement website continued to describe the arrangement as subject to final court approval; CYA does not classify the proposed distribution as completed repayment.
SEC imposes cease-and-desist order on MyConstant founder
The SEC entered a settled order finding material misrepresentations, misuse and misappropriation of investor funds, and securities-law violations connected with MyConstant's Loan Matching Service.
The respondent consented to the order without admitting or denying most findings, while admitting jurisdiction and specified bankruptcy-discharge findings.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
customer outcome
3 sourcesDFPI alert records MyConstant liquidation announcement
California Department of Financial Protection and Innovation · 2022-12-05
Confirms the 25 November 2022 orderly-liquidation announcement.
Preliminary Approval Order in Bhavsar et al. v. CONST LLC et al.
Riverside County Superior Court / Kroll Settlement Administration · 2025-02-04
Court order granting preliminary approval to the proposed class settlement.
CONST Settlement frequently asked questions
Court-authorized CONST Settlement Administrator
Describes the proposed liquidating trust, pro rata allocation, and approval process.
Event
4 sourcesDFPI investigation alert on MyConstant
California Department of Financial Protection and Innovation · 2022-12-05
Confirms the 17 November 2022 deposit and withdrawal pause.
SEC administrative order: November 2022 halt
U.S. Securities and Exchange Commission · 2025-08-05
Records the November 2022 end of normal operations and customer withdrawals.
Desist and Refrain Orders against CONST LLC
California Department of Financial Protection and Innovation · 2022-12-21
Official order covering the platform's lending and interest-bearing products.
DFPI orders MyConstant to cease offering crypto-related products
California Department of Financial Protection and Innovation · 2022-12-21
Official summary of the state regulatory action.
failure reason
1 sourcesSEC administrative order in the MyConstant matter
U.S. Securities and Exchange Commission · 2025-08-05
Primary source for the federal findings and ordered sanctions.
launch date
1 sourcesSEC administrative order concerning MyConstant
U.S. Securities and Exchange Commission · 2025-08-05
The order dates the Loan Matching Service to around May 2019.
status
1 sourcesSEC administrative order: platform status
U.S. Securities and Exchange Commission · 2025-08-05
Supports the operations-ended classification.
url history
1 sourcesMyConstant website archive captures
Internet Archive
Archived pages preserve the platform and product history.
No evidence records match the current filters.
Comparative records