LUNA climbs 39.89% in 7 days as legal proceedings unfold and the network receives an upgrade

LUNA Price Performance and Recent Trends

On December 5, 2025, LUNA experienced a modest 0.2% increase over the previous 24 hours, reaching a value of $0.101. This marks a notable 39.89% rise over both the past week and month. However, despite these recent gains, the token remains significantly lower than its value a year ago, having dropped by 75.65%.

Heightened Legal Attention and Shareholder Involvement

Halper Sadeh LLC, a law firm specializing in investor rights, has launched an inquiry into possible breaches of fiduciary duty by Luna Innovations Incorporated’s leadership (OTCMKTS: LUNA). The firm is urging shareholders to get in touch to discuss potential improvements in corporate governance, financial restitution, and other available remedies.

The firm emphasizes that active participation from shareholders can lead to greater transparency and accountability within the company. The investigation will proceed on a contingency fee basis, ensuring clients incur no upfront expenses.

Binance to Pause LUNA Transactions for Network Upgrade

Binance has announced a temporary halt on deposits and withdrawals of Terra (LUNA) starting at 20:05 UTC+8 on December 8, 2025. This pause supports a scheduled network upgrade, which will occur at block height 18,660,000, expected around 21:05 UTC+8 the same day. The exchange stated that this measure is intended to safeguard the platform’s security and stability during the upgrade process.

Users are encouraged to follow Binance’s official updates for further information and confirmation once the upgrade is complete. No additional specifics about the upgrade’s scope or effects have been disclosed.

Legal Ramifications Following Terra’s Downfall

The U.S. Department of Justice has recommended a 12-year prison sentence for Do Kwon, the founder of Terraform Labs, in connection with the 2022 Terra-Luna collapse. Earlier this year, Kwon admitted guilt to charges of wire fraud and conspiracy, acknowledging that he deceived investors and manipulated the market.

Prosecutors argue that the proposed sentence reflects the seriousness of the offenses and ensures consistency with similar cases, such as Sam Bankman-Fried’s 25-year sentence for the FTX collapse. Kwon’s defense has requested a five-year sentence, citing mitigating circumstances like time served in Montenegro and the challenging market environment at the time. The sentencing is set for December 11 in Manhattan.

Luna Classic Rallies Amid Legal Uncertainty

Luna Classic (LUNC) surged by 20% ahead of Do Kwon’s sentencing, fueled by increased token burns that have reduced supply and heightened demand. Analysts point out that, while technical indicators suggest a bullish trend, the looming legal proceedings could introduce significant volatility and potentially trap bullish investors.

LUNC’s recent price action has brought it close to important resistance levels. Should the upward momentum persist, the token may challenge the R1 Pivot Point at $0.00003914, with a possible move toward $0.00005107. Conversely, a decline below the central Pivot Point at $0.00003241 could result in a retest of the December 1 low.

Momentum metrics such as the RSI and MACD indicate growing buying interest, supporting a short-term optimistic outlook.

Key Takeaways

• LUNA has posted strong weekly and monthly gains, despite a significant year-over-year decline.
• Legal investigations into Luna Innovations and Terraform Labs highlight ongoing scrutiny from both corporate and regulatory perspectives.
• A scheduled network upgrade will temporarily interrupt LUNA transactions on Binance.
• Do Kwon faces a recommended 12-year prison sentence for his involvement in the Terra-Luna collapse.
• LUNC’s recent price rally is driven by token burns and market anticipation ahead of Kwon’s sentencing.

These events illustrate the complex environment surrounding LUNA and its related assets, as legal, technical, and market dynamics intersect in the lead-up to several pivotal developments.