US Government Transfers $768K in FTX-Seized Chainlink Tokens to Coinbase Prime

The U.S. government transferred $768K in Chainlink (LINK) tokens, seized from FTX and Alameda Research, to Coinbase Prime, sparking sale speculation. The funds are part of an $11B forfeiture from Sam Bankman-Fried for victim compensation. While a government policy requires holding seized Bitcoin in reserve, other assets like LINK can be sold. Analysts note the amount is less than 0.4% of LINK's daily volume, suggesting minimal market impact.

FTX-seized Chainlink transfer

• ▪A federal judge ordered FTX founder Sam Bankman-Fried to forfeit $11 billion after his fraud conviction, with the funds directed toward victim compensation
• ▪The transferred funds originate from assets seized from FTX and Alameda Research following their collapse in November 2022
• ▪A wallet linked to the US government transferred 98,591 Chainlink (LINK) tokens, worth approximately $768,000, to Coinbase Prime on June 10, 2026
• ▪The transfer was initiated with a small test transaction of 1 LINK before the main balance was sent

Coinbase Prime custody infrastructure

• ▪The US Marshals Service, a division of the Department of Justice, selected Coinbase Prime in July 2024 to manage custody and trading of its seized large-cap digital assets
• ▪A transfer to Coinbase Prime can indicate a custody change or preparation for a sale, but does not by itself confirm a market liquidation
• ▪The US Marshals Service has managed seized crypto sales for over a decade, beginning with a 2014 auction of 30,000 bitcoins from Silk Road

Digital Asset Stockpile treatment

• ▪The same March 2025 order created the U.S. Digital Asset Stockpile for non-Bitcoin assets, which can be sold or otherwise disposed of
• ▪As a non-Bitcoin asset, the seized Chainlink (LINK) is part of the Digital Asset Stockpile and does not have the same no-sale protection as Bitcoin

Sale speculation analysis

• ▪The transferred amount of LINK represents less than 0.4% of the token's $225 million daily trading volume, suggesting a minimal market impact if sold
• ▪The on-chain data confirms the transfer to Coinbase Prime but does not show evidence of a market sale or distribution to buyers
• ▪The transaction is part of a pattern of seized altcoin transfers by the US government, which previously included UNI, RNDR, ETH, and SAND