LUNA +40.14% in 24 Hours as Terra Network Upgrades and Legal Proceedings Continue

On DEC 5 2025, LUNA rose by 40.14% within 24 hours to reach $0.1024, with a 43.63% increase over 7 days and over the past month. Despite this, the token remains down 74.99% year-to-date.

Terra Network Prepares for Scheduled Blockchain Upgrade

Binance announced it will temporarily suspend Terra (LUNA) deposit and withdrawal services on Dec. 8, 2025, at 20:05 UTC+8, to facilitate a network upgrade. The upgrade is expected to occur at block height 18,660,000, around 21:05 UTC+8 on the same day. The exchange emphasized the move is aimed at ensuring a secure and continuous transition during the protocol update.

Users are advised to monitor Binance’s official channels for real-time status updates and post-upgrade confirmations. During the maintenance window, the token’s liquidity will remain unaffected, and trading activity is not expected to halt.

Legal Proceedings Continue for Terra Founder Do Kwon

U.S. prosecutors are seeking a 12-year prison sentence for Do Kwon, founder of Terraform Labs, for his role in the collapse of the Terra and LUNA cryptocurrencies. The request was submitted to U.S. District Judge Paul Engelmayer in the Southern District of New York. Kwon pleaded guilty earlier this year to wire fraud and conspiracy to defraud.

Prosecutors argued that Kwon’s actions caused widespread financial damage, contributing to the 2022 "Crypto Winter." They emphasized that the scale of the fraud—estimated to have wiped out over $40 billion in value—justifies a significant prison term. The DOJ also highlighted that Kwon fled his home country and attempted to evade justice by using forged travel documents.

Kwon’s sentencing is scheduled for December 11 in Manhattan federal court. His legal team has requested a five-year sentence, citing time served in Montenegro and the potential for additional legal action in South Korea. U.S. prosecutors, however, argue that a lighter sentence would undermine the integrity of the justice system and send the wrong message to the crypto industry.

LUNA's Price Surge Amid Regulatory and Technical Developments

LUNA’s recent 40% price increase comes amid both regulatory and technical developments. The network upgrade by Binance underscores continued institutional interest in the Terra ecosystem, while the legal case against Do Kwon highlights the broader scrutiny facing crypto founders and projects.

The market response reflects a balance between optimism for the technical improvements and concerns over regulatory risk. As the Terra blockchain undergoes this scheduled transition, investors are watching for signs of improved stability and long-term viability for LUNA.