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LUNA surges 40.14% in the past 24 hours amid ongoing Terra network updates and legal actions

LUNA surges 40.14% in the past 24 hours amid ongoing Terra network updates and legal actions

Bitget-RWA2025/12/05 17:44
By:Bitget-RWA

- LUNA surged 40.14% in 24 hours to $0.1024, but remains down 74.99% year-to-date. - Binance suspended LUNA deposits/withdrawals on Dec 8 to support Terra's blockchain upgrade at block 18,660,000. - U.S. prosecutors seek 12-year sentence for Terra founder Do Kwon over $40B crypto collapse, citing fraud and forged documents. - Market reacts to technical upgrades and legal risks as Terra faces regulatory scrutiny and founder accountability debates.

LUNA Experiences Significant Price Rally

On December 5, 2025, LUNA surged by 40.14% within a single day, reaching a value of $0.1024. Over the past week and month, the token has climbed 43.63%. However, despite these recent gains, LUNA remains 74.99% lower compared to its value at the start of the year.

Terra Network Set for Major Blockchain Upgrade

Binance has announced a temporary pause on deposits and withdrawals for Terra (LUNA) starting December 8, 2025, at 20:05 UTC+8. This measure is to support an upcoming network upgrade, which is scheduled to take place at block height 18,660,000, expected around 21:05 UTC+8 the same day. Binance stated that this step is necessary to ensure a smooth and secure protocol transition.

Users are encouraged to stay updated through Binance’s official communication channels for the latest information and confirmation once the upgrade is complete. During this maintenance period, trading will continue as usual and the token’s liquidity is not expected to be impacted.

Ongoing Legal Battle for Terraform Labs Founder Do Kwon

U.S. authorities are pursuing a 12-year prison sentence for Do Kwon, the founder of Terraform Labs, due to his involvement in the downfall of the Terra and LUNA cryptocurrencies. The sentencing recommendation was submitted to Judge Paul Engelmayer in the Southern District of New York. Earlier this year, Kwon admitted guilt to charges of wire fraud and conspiracy.

Prosecutors claim that Kwon’s actions led to extensive financial losses, playing a significant role in the 2022 "Crypto Winter." They estimate the fraud erased over $40 billion in value and argue that the severity of the case warrants a lengthy prison term. The Department of Justice also pointed out that Kwon attempted to avoid prosecution by fleeing his country and using fake travel documents.

Kwon is scheduled to be sentenced on December 11 in Manhattan federal court. His defense team has asked for a five-year sentence, referencing time already served in Montenegro and the possibility of further legal proceedings in South Korea. Prosecutors, however, maintain that a reduced sentence would undermine the justice system and send the wrong signal to the cryptocurrency sector.

LUNA’s Price Jump Amid Legal and Technical Changes

LUNA’s recent 40% price rally coincides with both regulatory developments and technical upgrades. Binance’s support for the network upgrade signals ongoing institutional confidence in the Terra platform, while the legal proceedings against Do Kwon highlight increasing regulatory scrutiny of crypto projects and their leaders.

The market’s reaction appears to balance optimism about the network’s technical progress with caution regarding regulatory challenges. As Terra moves forward with its scheduled upgrade, investors are closely monitoring the project’s stability and prospects for long-term growth.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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