LUNA +39.89% 7-Day Surge Amid Legal Actions and Network Upgrade

LUNA rose by 0.2% within 24 hours to reach $0.101 on DEC 5, 2025, marking a 39.89% increase over the past week and a 39.89% gain in the last month. Despite this recent upward momentum, the token remains down 75.65% from its price a year ago.

Legal Scrutiny Intensifies as Shareholders Urged to Act

Halper Sadeh LLC, an investor rights law firm, has announced an investigation into potential fiduciary duty breaches by officers and directors of Luna Innovations Incorporated (OTCMKTS: LUNA). The firm is encouraging shareholders to contact them to explore corporate governance reforms, financial recoveries, and other remedies.

According to the firm, active shareholder participation can drive meaningful corporate change, including improved transparency and accountability. The action will be pursued on a contingency basis, ensuring no out-of-pocket costs for clients.

Network Upgrade to Disrupt Binance Transactions

Binance announced it will temporarily suspend Terra (LUNA) deposits and withdrawals at 20:05 UTC+8 on December 8, 2025, in support of an ongoing network upgrade. The upgrade is scheduled to occur at block height 18,660,000, estimated to take place around 21:05 UTC+8 on the same day. The exchange emphasized the move is to maintain security and stability during the transition period.

Users are advised to monitor Binance’s official channels for updates and confirmations following the upgrade window. No further details were provided regarding the scope or impact of the network changes.

Legal Consequences for Terra’s Collapse

The U.S. Department of Justice (DOJ) has filed a sentencing recommendation seeking 12 years in prison for Do Kwon, founder of Terraform Labs, for his role in the 2022 Terra-Luna collapse. Kwon pleaded guilty earlier this year to wire fraud and conspiracy to defraud, admitting to misleading investors and manipulating the market.

Prosecutors argued that a 12-year sentence aligns with the severity of the crime and addresses “unwarranted disparities” with similar cases, including that of Sam Bankman-Fried, who was sentenced to 25 years for the collapse of FTX. Kwon’s legal team had requested a five-year sentence, citing mitigating factors such as prior time in Montenegro and the complexity of the market conditions at the time.

The sentencing hearing is scheduled for December 11 in Manhattan.

Luna Classic Gains Amid Pre-Sentence Volatility

Luna Classic (LUNC) saw a 20% rise in price ahead of Do Kwon’s sentencing hearing. Increased token burns contributed to reduced supply and inflated demand. Analysts note that while the technical outlook is bullish, the upcoming legal developments could introduce volatility and create a potential bull trap.

The token’s price movement has drawn attention to its position near key resistance levels. If LUNC continues to rise, it could test the R1 Pivot Point at $0.00003914, with a potential target at $0.00005107. However, a drop below the central Pivot Point at $0.00003241 could lead to a retest of the December 1 low.

Momentum indicators, including RSI and MACD, show increased buying pressure, reinforcing short-term bullish sentiment.

Summary of Key Developments

• LUNA’s price has shown strong weekly and monthly gains despite a steep decline over the past year.
• Legal actions against Luna Innovations and Terraform Labs highlight ongoing corporate and regulatory scrutiny.
• A network upgrade will temporarily disrupt LUNA transactions on Binance.
• Do Kwon is facing a 12-year prison sentence recommendation for his role in the Terra-Luna collapse.
• LUNC’s price surge is attributed to token burns and market sentiment ahead of Kwon’s sentencing.

These developments underscore a complex landscape for LUNA and related assets, with legal, technical, and market factors converging ahead of key upcoming events.