LUNA Up 42.62% in 7 Days as Terra Ecosystem Legal Drama Unfolds

LUNA, the native token of the Terra blockchain, saw a sharp increase of 42.62% over the past seven days as legal proceedings against Terraform Labs co-founder Do Kwon continued. As of December 7, 2025, LUNA traded at $0.1015, reflecting a 0.8% rise within the last 24 hours.

Over the past month, the token gained 40.44%, marking a notable rebound after a year marked by a 75.55% drop.

The rally came in the wake of a U.S. prosecutors' request for a 12-year prison sentence for Kwon, who is currently on trial for his role in the 2022 collapse of the Terra ecosystem. The prosecution described his actions as “colossal in scope,” emphasizing the widespread impact of the $40 billion collapse that triggered a chain reaction across the crypto market, including the fall of FTX.

Despite the legal pressure on Kwon, the Terra community’s engagement has remained strong. LUNA Classic and LUNC, both closely associated with the Terra ecosystem, also experienced significant gains, rising by 70–130% and over 19% respectively on December 6. The market’s reaction suggests that investors are viewing the ongoing legal proceedings not as a deterrent, but as a potential catalyst for renewed interest in Terra assets.

Analysts project that the legal outcome could influence further market sentiment, particularly as the trial proceeds toward a sentencing hearing scheduled for December 11. Kwon has pleaded guilty to the charges, with his defense team seeking a five-year sentence. Prosecutors, meanwhile, have agreed to cap the sentence at 12 years, with a possibility for Kwon to serve half of it in South Korea.

The legal uncertainty, however, has not dampened market speculation. Public commentary from Kwon’s fellow inmates and recent media coverage have spurred renewed debates about his potential for a presidential pardon, though the Polymarket prediction market assigns a mere 2% probability to such an outcome.

The recent price action for LUNA appears to reflect a broader pattern among so-called “bankruptcy concept coins,” with USTC surging over 78% in 24 hours and FTT rising over 18%. These movements highlight a growing appetite among investors for risk-on assets within the crypto market, despite ongoing legal and regulatory scrutiny.

As the Terra case continues to unfold, LUNA’s performance underscores the complex interplay between market sentiment and legal developments in the crypto space. With the final sentencing hearing approaching, the Terra community and broader crypto market will be closely watching for further developments.