It is little wonder that people lose faith in science if these kinds of quack researchers continue to claim revolutionary new inventions while swindling investors and the public out of money.
To nuance a little: I am not outraged by the fact that this project didn't work out. Research projects fail all the time; research is difficult and uncertain. The continued lying and pretending ("fake it until you make it"), however, is very problematic and in some labs and in some research fields systemic.
Let's hope MIT and/or the Media Lab have an adequate response to this immoral misconduct.