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Where do you read that description? Luanti has been around for many years (previously called Minetest). It's entirely built from scratch and a true FLOSS project.

It's also not really a "game" so much as a "game engine" so it's not even a direct competitor to Mojang

This is in the source article of this post: "While Luanti is popular as an open-source alternative to Minecraft (as its roots are in blocky sandbox games), it also lowers barriers to bringing creative ideas to life."

I think you are hallucinating that quote.

This is the reason anti-SLAPP statutes exist in many jurisdictions.