Pennsylvania Senator Pat Tomei Believes Failed Blockchain Project Might Be a Scam
Pennsylvania Senator Pat Tomei recently told Barron’s that Terra may be a fraudulent project.
The Republican lawmaker pointed to the fact that Luna promised huge returns, offering “very questionable technology”.
Toomey, who recently introduced a draft bill focusing on private stablecoins, said investors were likely misrepresenting the nature of Terra.
Toomey, of course, isn’t alone. As reported by U.Today, prominent hedge fund manager Bill Ackman concluded that Terra was a typical pyramid scheme, warning that such fraudulent projects pose a threat to the entire cryptocurrency ecosystem.
However, FTX CEO Sam Bankman-Fried said that Terra was not a Ponzi after the failed blockchain project was compared to the infamous biotech scam Theranos. He argued that the project was a matter of “public enthusiasm”.Meanwhile, South Korean authorities have moved to freeze the assets of the Luna Foundation Guard, allegedly accusing Terra’s non-profit foundation of embezzlement.
All of LFG’s funds were used to unsuccessfully help the TeraUSD (UST) stablecoin regain its peg.
The price of the LUNA Governance token remains near zero.