US Senator Says Terra Investors May Have Been Scammed

Senator Pat Toomey of Pennsylvania recently informed Barron’s that Terra could be a scam.

Luna promised big returns while delivering “extremely dubious technology,” according to the Republican congressman.

Investors may be misrepresenting the nature of Terra

According to Toomey, who recently proposed a draft bill concentrating on private stablecoins.

Of course, Toomey is not alone. Famed hedge fund manager Bill Ackman decided that Terra was a conventional pyramid scheme, saying that such scams represent a threat to the entire cryptocurrency ecosystem.

However, FTX CEO Sam Bankman-Fried opined that LUNA wasn’t 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.”

In the meantime, South Korean authorities have reportedly moved to freeze the assets of Luna Foundation Guard, accusing Terra’s non-profit foundation of embezzlement.

Virtually all of the LFG’s funds were used in order to unsuccessfully help the TerraUSD (UST) stablecoin regain its peg.

The price of the LUNA governance token remains at virtually zero.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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