Do Kwon’s cat & mouse game with the United States law enforcement is coming to a close on December 11, 2025, bringing closure to investors affected by the 2022 Terra Luna ecosystem collapse.
Kwon’s Looking At 12 Years? Sentencing Day Brings Closure
Right now, the prosecutors at Manhattan courts are asking to send TerraForm Labs founder Do Kwon to prison for 12 years. The crypto mogul is suspected of defrauding investors, luring them into believing that the UST stablecoin was programmed to keep the $1 dollar peg in any case.
However, once the liquidity crunch trashed this UST status quo level, TerraForm Labs took a reputational hit & the programming errors wiped away over $40 billion in a matter of days. Now, Do Kwon is standing in front of the Honorable Judge Engelmayer in the South District Court.
As we can learn from previous experience, the defense team usually cuts out a deal for less than that – Sam Bankman Fried (SBF) got 25 years instead of 50. In TerraForm Lab’s boss case, he’d already served time for forging multiple passports during the global run from the cops.
Not The Same: Specialists Sound Alarm On LUNA Price Rally
Meanwhile, both associated digital assets have enjoyed over 200% rallies since last week, particularly Terra Luna Classic (LUNC) surfacing as the top gainer among TOP 300 largest crypto currencies, while other altcoins get the sideways treatment amidst Bitcoin’s $90K dip.
Regardless, many crypto market connoisseurs are drawing attention to the extremely volatile nature of Terra (LUNA) coins recent upswing – it lacks fundamentals. The community-driven trading pressure came in after a CoinDesk Journalist rocked the LUNC t-shirt during Binance Blockchain Week in Dubai, UAE.
This has sparked renewed retail interest in the original Terra Luna Classic (LUNC) token, which is different from the Terra (LUNA) 2.0. While the revamped version lacks community substance & barely gets any organic mentions on X, the legacy fork, later rebranded as Terra Luna Classic, is still seeing substantial developer activity.
Since TerraForm Labs went bankrupt, the embattled crypto entrepreneur Do Kwon has no real control over the LUNC chain. Right now, the Luna Classic community is actively deflating the over-minted altcoin in hopes of a gradual LUNC coin re-listing on mainstream platforms like Coinbase.
On The Flipside
- Hype-driven triple-digit spikes for otherwise rarely-used digital assets can cause Fear Of Missing Out (FOMO), with retail investors often jumping in at price tops, providing exit liquidity for the whales.
Why This Matters
Since 2022, the impact of TerraForm’s algorithmic stablecoin crash has been felt across all sorts of crypto hedge funds, liquidity pool providers, market makers & big tech companies.
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People Also Ask:
LUNC rose over 200% and LUNA over 125% in a week surrounding Do Kwon’s sentencing hearing in Manhattan federal court, driven by high volatility and speculative trading.
U.S. prosecutors requested up to 12 years in prison for Kwon on charges tied to the $40 billion Terra/Luna collapse; the judge has not yet issued the final sentence.
No direct causal link has been proven; the rally appears to be a mix of nostalgia trading, short squeezes, and community sentiment rather than a reaction to a specific verdict.
Yes, Kwon was found guilty in April 2025 on multiple counts of fraud and market manipulation related to the 2022 TerraUSD de-peg.
Market analysts remain divided; sustained momentum would require fresh fundamental developments, as current gains are largely speculative and volume-driven.
DailyCoin’s Vibe Check: Which way are you leaning towards after reading this article?
