Luna +46.22% 7-Day Surge Driven by Prosecution News

On DEC 8 2025, LUNA rose by 5.67% within 24 hours to reach $0.1055, LUNA rose by 46.22% within 7 days, rose by 47.23% within 1 month, and dropped by 74.37% within 1 year.

Prosecutors Seek 12-Year Sentence for Terra Founder Do Kwon

The price surge for LUNA was triggered by developments in the legal case against Do Kwon, co-founder of Terraform Labs. On December 6, public prosecutors filed a request with a U.S. district court seeking a 12-year prison sentence for Kwon in connection with the collapse of the Terra ecosystem, which wiped out around $40 billion in value. Kwon, who is currently on trial in Manhattan, faces charges tied to the failure of TerraUSD, a dollar-pegged stablecoin that lost its peg in May 2022, triggering a chain reaction that caused the value of LUNA and Luna Classic to plummet.

Prosecutors described Kwon’s actions as “colossal in scope” and emphasized that the crime “merited a tough sentence.” The legal proceedings have drawn significant attention within the crypto community, with some observers suggesting that the news of a potential prison sentence for Kwon may have sparked a renewed interest in Terra-based assets.

Market Response and Price Fluctuations

Following the prosecution’s sentencing request, both Luna and Luna Classic experienced significant price increases. Luna Classic’s price jumped from approximately $0.000028 on December 4 to nearly $0.00008 by the evening of December 6. Although the price has since pulled back to around $0.00006, the movement represented a 130% increase within a short period. Terra Luna prices also saw a 70% rise over the same time frame, moving from just over $0.07 to more than $0.15.

The unexpected price reaction appears to reflect a broader market sentiment that Kwon’s legal troubles could lead to renewed interest in the Terra blockchain ecosystem, including its native tokens. Some crypto analysts on social platforms suggested that the case could be perceived as a turning point, potentially paving the way for regulatory clarity and a more stable future for the Terra blockchain.

Legal and Sentencing Timeline

Kwon has pleaded guilty to the charges and is now awaiting sentencing on December 11. His legal team has requested a five-year prison term, significantly lower than the 12 years sought by prosecutors. As part of a legal agreement, prosecutors have agreed not to request a sentence exceeding 12 years and have also agreed to request that Kwon serve half of his sentence in South Korea.

The case has already been highlighted as a landmark legal development in the crypto space, particularly in the wake of the collapse of FTX. Prosecutors have stated that Kwon’s actions “triggered a series of cascading crises in the crypto world,” underscoring the far-reaching consequences of the Terra ecosystem’s failure.

Market Outlook and Investor Caution

While the legal proceedings are still unfolding, the recent price movement for LUNA highlights the unpredictable nature of the cryptocurrency market, especially in the context of high-profile legal cases. Analysts project that the outcome of Kwon’s sentencing could have long-term implications for the Terra blockchain and its associated tokens.

Investors are advised to remain cautious, as volatility is expected to persist until the legal matter is fully resolved. The Terra blockchain remains a subject of interest for many in the crypto community, but its future will depend on both legal developments and the broader regulatory environment for digital assets.