LUNA 37.8% Surge Driven by SBF Pardon Speculation

On DEC 6 2025, LUNA rose by 37.8% within 24 hours to reach $0.1442, marking a 104.57% increase over the past week and a 92.38% rise in the last month. Over the last year, however, the token has dropped by 66.51%. The recent rally is being attributed to market speculation surrounding a potential pardon for Sam Bankman-Fried (SBF), the founder of FTX.

Market Rally Tied to SBF Pardon Rumors

The price movement of LUNA has coincided with speculation that SBF might receive a clemency decision. SBF has been central to the narrative around the 2022 Terra-LUNA collapse, which saw the token’s value plummet from $80 to near zero, erasing $45 billion in market capitalization. As discussions around legal outcomes for SBF continue, investors are drawing connections between broader sentiment in the crypto space and the recent performance of LUNA.

LUNA’s Rebrand and Historical Context

LUNA is the native token of the Terra 2.0 chain, reissued following the collapse of the original Terra chain and the associated Luna Classic (LUNC) token. The 2022 collapse was triggered by the depegging of the algorithmic stablecoin TerraUSD (UST), leading to a cascading failure of the Terra ecosystem. In contrast, the rebranded LUNA is part of a post-UST initiative, designed with a new governance model and economic structure.

Legal and Market Implications of the Terra Collapse

The Terra-LUNA collapse had far-reaching consequences beyond Terra’s ecosystem. It contributed to the broader 2022 market downturn and led to heightened regulatory scrutiny across the crypto sector. Do Kwon, the founder of Terraform Labs, has pleaded guilty to fraud and is facing sentencing on December 11. Prosecutors have recommended a 12-year prison term, citing the catastrophic losses incurred by investors and the broader market instability.

Analysts and Market Reactions

Analysts project that the renewed interest in LUNA is being driven by both speculative trading and broader sentiment shifts in the crypto space. While the token’s price is still far from its pre-2022 levels, the recent gains indicate that investors are beginning to reassess its potential. The legal developments surrounding SBF and Kwon are being closely watched, with market participants anticipating any regulatory or legal signals that could influence future price trends.

Looking Ahead

As the Terra ecosystem continues to evolve, the long-term trajectory of LUNA will depend on several factors, including the outcomes of ongoing legal cases and the adoption of new governance mechanisms. The recent price surge, though significant, reflects a market still in the process of recovery and reevaluation. Investors remain cautious but are showing renewed interest, particularly in light of the broader narrative surrounding key figures like SBF and Kwon.