US Government Transfers Seized FTX Chainlink Tokens to Coinbase Prime
The US Marshals Service utilises Coinbase Prime for custody of seized digital assets, with the transferred value representing less than 0.4% of daily trading volume.
A wallet linked to the US government transferred 98,590 Chainlink (LINK) tokens, valued at approximately $768,000, to Coinbase Prime on Wednesday. The tokens were seized from the collapsed cryptocurrency exchange FTX, and the movement has triggered speculation regarding a potential sale of the assets.
Blockchain trackers, including Lookonchain and Solid Intel, flagged the deposit to Coinbase Prime within minutes of the transaction. Arkham Intelligence has classified the sending address under its US government entity label, noting that the agency has documented earlier movements from the same cluster.
The tokens originate from assets confiscated following the collapse of cryptocurrency exchange FTX and Alameda Research in November 2022. A federal judge ordered Sam Bankman-Fried to forfeit $11 billion after his fraud conviction, with recovered funds directed toward victim compensation. The FTX estate recently completed its fourth creditor distribution round in March, delivering $2.2 billion to customers.
The US Marshals Service selected Coinbase Prime in July 2024 to custody and trade its "Class 1" (large-cap) digital assets. This arrangement follows a comprehensive selection process to safeguard and trade these holdings. The agency has managed seized crypto sales for over a decade, beginning with the 2014 auction of 30,000 Silk Road bitcoins, and has historically favoured structured sales over open-market dumps.
This transaction extends a pattern of earlier transfers of seized altcoins, including Uniswap (UNI), Render (RNDR), Ethereum (ETH), and The Sandbox (SAND). The transferred amount represents less than 0.4% of LINK's daily trading volume and 0.01% of its circulating supply.
Chainlink’s price is currently near $7.66, with a market capitalisation of $5.57 billion. The token has experienced a 27% price slide over the past 30 days and a 49% decline over the past year. Broader market context includes US stock market gains and a summit between President Donald Trump and Chinese President Xi Jinping in Beijing.
It remains unclear whether the deposit to Coinbase Prime indicates an imminent sale, a routine custody change, or preparation for an over-the-counter deal. The specific timing and method of any potential liquidation remain unknown, with on-chain data not confirming liquidation.
