MyConstant, an online platform for crypto loans, has been ordered by California financial regulators to stop offering certain crypto-related products in the state.
The Department of Financial Protection and Innovation (DFPI) has blocked the platform from selling securities in the state, including its main lending platform and interest-bearing accounts, because it has been operating as a finance lender or broker without the necessary license.
The DFPI also alleges that MyConstant has been selling unqualified securities in California since at least 2020 by offering two interest-bearing products.
MyConstant offered loan brokering services, including a “Loan Matching Service” with interest rates of 6-9% depending on the repayment period, which required borrowers to provide crypto assets worth 150% of the loan value as collateral.
The company is accused of targeting individuals with bad credit and no material assets and representing to lenders that there was a “very low” risk of losing their invested capital.
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