Pennsylvania Senator Pat Toomey said that Terra (LUNA) could be a bogus project.
The Republican senator also drew attention to the fact that Luna promised big returns while offering “very questionable technology.”
Toomey, who recently introduced a bill focusing on stablecoins, said investors may have misrepresented the nature of Terra.
Toomey isn’t the only one to think so. Leading hedge fund manager Bill Ackman said that Terra is a typical pyramid scheme, and that this type of project poses a huge threat to the entire cryptocurrency ecosystem.
FTX CEO Sam Bankman-Fried stated that Terra is not a Ponzi after the failed blockchain project was compared to the infamous biotech scam Theranos. He argued that the project was a case of “mass enthusiasm.”
South Korean authorities have also moved to freeze the Luna Foundation Guard’s assets on charges of embezzlement.
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