Senator Pat Toomey Says Terra Project A Fraud, Is That True?

JAKARTA – The collapse of Terra (LUNA) which caused the loss of investor funds some time ago, received a response from the US senator, Pat Toomey. He judged that Terra was a fraudulent project.

The Republican lawmaker has pointed to the fact that Luna promises big returns while offering "very dubious technology."

Toomey, who recently introduced a bill focused on private stablecoins, added that investors may be misrepresenting Terra's nature.

Toomey, of course, is not alone. As reported by U.Today, top hedge fund manager Bill Ackman concluded that Terra is typical of a pyramid scheme, warning that such fraudulent projects pose a threat to the entire cryptocurrency ecosystem.

Contrary to this negative view, FTX crypto exchange boss Sam Bankman-Fried stated that Terra is not a Ponzi scheme scam compared to the notorious biotech scam Theranos. He considered that the project was a case that made the masses enthusiastic.

On the other hand, South Korean authorities accused Terra of embezzlement. They plan to freeze the assets of the Luna Foundation Guard (LFG). The reason is that the reserve funds in LFG were used to help the stablecoin TerraUSD (UST) which failed to return to the US dollar peg.