Luna Jumps 46.22% in a Week Following Legal Action Reports

LUNA Sees Sharp Gains Amid Legal Developments

On December 8, 2025, LUNA surged by 5.67% in a single day, reaching a price of $0.1055. Over the previous week, the token climbed 46.22%, and over the past month, it gained 47.23%. However, looking back over the year, LUNA has dropped by 74.37%.

Terra Founder Do Kwon Faces 12-Year Sentence Request

The recent rally in LUNA’s price coincided with significant updates in the legal proceedings against Do Kwon, the co-founder of Terraform Labs. On December 6, U.S. prosecutors formally requested a 12-year prison term for Kwon, holding him responsible for the collapse of the Terra ecosystem—a failure that erased approximately $40 billion in value. Kwon, currently on trial in Manhattan, is accused of offenses related to the downfall of TerraUSD, a stablecoin that lost its dollar peg in May 2022. This event triggered a dramatic decline in both LUNA and Luna Classic prices.

Prosecutors described Kwon’s actions as “immense in scale” and argued that the severity of the crime warranted a substantial sentence. The case has drawn widespread attention in the cryptocurrency sector, with some speculating that the prospect of Kwon’s imprisonment has reignited interest in Terra-related assets.

Market Reaction and Price Movements

Following the prosecution’s request, both Luna and Luna Classic experienced notable price spikes. Luna Classic rose from about $0.000028 on December 4 to nearly $0.00008 by the evening of December 6—a 130% increase in a short span, before settling around $0.00006. LUNA itself jumped more than 70% during the same period, moving from just above $0.07 to over $0.15.

This unexpected market response suggests that investors may view Kwon’s legal troubles as a potential catalyst for renewed activity within the Terra ecosystem. Some analysts on social media have even suggested that the case could mark a turning point, possibly leading to clearer regulations and a more stable future for Terra’s blockchain and tokens.

Legal Proceedings and Sentencing Schedule

Kwon has admitted guilt and is awaiting sentencing, which is scheduled for December 11. His defense team has asked for a five-year sentence, considerably less than the 12 years sought by prosecutors. As part of the legal negotiations, prosecutors have agreed not to pursue a sentence longer than 12 years and have also consented to request that Kwon serve half of his sentence in South Korea.

This case is being recognized as a pivotal moment in cryptocurrency law, especially in the aftermath of the FTX collapse. Prosecutors have emphasized that Kwon’s actions set off a series of crises throughout the crypto industry, highlighting the extensive impact of the Terra ecosystem’s failure.

Investor Outlook and Ongoing Volatility

With the legal process still underway, LUNA’s recent price swings underscore the unpredictable nature of crypto markets, particularly when major legal events are involved. Experts believe that the outcome of Kwon’s sentencing could shape the long-term prospects for Terra and its associated tokens.

Investors are urged to exercise caution, as continued volatility is likely until the legal situation is resolved. The Terra blockchain remains under close watch within the crypto community, and its future will hinge on both the resolution of legal matters and the evolving regulatory landscape for digital assets.