LUNA -10.16% in 24 Hours Amid Founder Do Kwon’s Legal Repercussions

LUNA, the digital asset once central to the Terra ecosystem, fell by 10.16% within 24 hours on December 15, 2025, to trade at $0.1421. The token, which had surged by 97.09% over the previous month, has now dropped 65.69% year-to-date. This decline comes amid ongoing legal developments involving Do Kwon, the founder of Terraform Labs and architect of the LUNA and TerraUSD (UST) project.

Do Kwon, who is currently serving a 15-year prison sentence in the U.S. after pleading guilty to fraud and money laundering related to the 2022 Terra collapse, may still face additional legal proceedings in South Korea. Prosecutors there have indicated that Kwon could be subject to a separate criminal trial under the country’s Capital Markets Act if he is transferred back after serving half of his sentence under the International Prisoner Transfer Program.

A senior South Korean prosecutor told The Korea Times that a conviction under the Capital Markets Act could result in a sentence of more than 30 additional years. Prosecutors argue that holding Kwon accountable domestically would better serve victims in South Korea, where an estimated 200,000 people lost a combined $204 million in the Terra collapse.

Kwon’s legal team previously sought to be extradited to South Korea, but the request was denied, and he was instead transferred to the U.S. in December 2024. During sentencing, U.S. Judge Paul Engelmayer ordered the forfeiture of $19 million in illicit gains, following 315 victim impact statements that detailed severe personal and financial consequences.

Cybercrime consultant David Sehyeon Baek noted that South Korean victims view the U.S. conviction as a meaningful step toward justice, especially given perceptions that the Korean legal system is often lenient toward large-scale financial crimes. “When massive financial crimes are framed as business failures, the message is tolerance, not accountability,” Baek said.

Despite the legal clarity in the U.S., the continued uncertainty around Kwon’s future in South Korea could affect public sentiment and market perceptions, though the direct link between his legal status and LUNA’s price remains unproven.

The Terra collapse remains a landmark event in crypto history, with LUNA’s value plummeting from over $1 at its peak to near-worthlessness. The ecosystem’s failure continues to influence regulatory scrutiny and investor caution across the digital asset space.