LUNA Price Surges 20.24% Amid Speculation on SBF Pardon

On December 6, 2025, the Terra native token LUNA experienced a significant price increase of 20.24% within 24 hours, reaching $0.1189. Over the past seven days, the token surged 78.5%, marking a broader recovery over the past 30 days with a 67.87% rise. Despite this recent rally, LUNA remains 70.77% below its peak one year prior, reflecting the long-term impact of the 2022 collapse.

Market Rally Tied to SBF Speculation

The price movement has coincided with growing speculation surrounding a potential pardon for Sam Bankman-Fried (SBF), the former founder of FTX. SBF has been linked to the 2022 Terra UST depegging event, which led to the collapse of the LUNA token and the Terra ecosystem. The depegging triggered a cascading failure that wiped out $45 billion in market value and marked one of the most significant collapses in cryptocurrency history.

The current rally in LUNA has been attributed to renewed interest in Terra-based assets, particularly in the context of the Terra 2.0 chain. Unlike LUNC, or Luna Classic (formerly LUNA), which is tied to the now-defunct Terra Classic chain, the new LUNA is part of a rebranded and restructured protocol launched in response to the 2022 crash. This distinction has led to divergent performance between the two tokens, with LUNA demonstrating stronger recent gains.

Historical Context and Regulatory Fallout

The 2022 UST depegging remains a pivotal moment in crypto history. The algorithmic stablecoin lost its peg to the U.S. dollar, leading to a rapid and catastrophic devaluation of LUNA. The event drew global scrutiny and triggered multiple legal actions against Do Kwon, co-founder of Terraform Labs, who was later extradited to the United States. U.S. prosecutors are currently seeking a 12-year prison sentence for Kwon, citing the scale and impact of the fraud. His sentencing is set for December 11, 2025.

While SBF is not directly involved in the Terra project, his legal situation has fueled broader market sentiment. His potential pardon—still speculative—has led to increased volatility across the market, with investors closely monitoring any developments in the FTX case and its wider implications.

Conclusion: Volatility and Uncertainty Remain

Despite the recent gains, LUNA remains highly volatile and faces significant regulatory and reputational hurdles. The token's performance is closely tied to broader market sentiment and the ongoing legal proceedings in the crypto space. Analysts project that the market will continue to react to news surrounding key players and regulatory outcomes, but no formal forecasts are being made for the near-term trajectory of LUNA.