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U.S. Moves $768,000 in Seized FTX Chainlink Tokens to Coinbase Prime

A U.S. government wallet moved nearly 99,000 LINK to Coinbase Prime. That’s raising questions about a possible sale, even though the market impact looks limited.

By Luc Vesters
• 2 min read
U.S. Moves $768,000 in Seized FTX Chainlink Tokens to Coinbase Prime

Key Takeaways

  • A wallet tied to the U.S. government moved 98,590 seized Chainlink tokens, worth about $768,000, to Coinbase Prime.
  • The tokens came from the FTX and Alameda case; Coinbase Prime has been managing large digital assets for the US Marshals Service since July 2024.
  • The amount of LINK moved is small compared with trading volume and circulating supply, so a direct sale would likely have only a limited market impact.

A wallet linked to the U.S. government moved 98,590 Chainlink (LINK) tokens, worth about $768,000 (€665,600), to Coinbase Prime on Wednesday. These tokens were seized after the collapse of FTX, and the news sparked speculation about a possible sale.

Background on the Token Transfer

The tokens are part of assets that were confiscated in November 2022 after the bankruptcy of FTX and Alameda Research. A federal judge ordered Sam Bankman-Fried to forfeit $11 billion (€9.5 billion), and the recovered funds are being used to compensate victims. The US Marshals Service (USMS) picked Coinbase Prime in July 2024 as its partner to manage and trade large digital assets. That choice means transfers to Coinbase Prime often come before changes in custody, over-the-counter transactions, or liquidations.

The USMS has a long track record of managing and selling seized cryptocurrencies, including a well-known auction of 30,000 bitcoins from the Silk Road case in 2014. Even though the agency has faced criticism in the past over how it handles and accounts for digital assets, it remains a major player in settling cases like this.

Impact on the Chainlink Market and What to Watch Next

The amount of LINK moved represents less than 0.4% of the daily trading volume of $225 million (€195 million) and about 0.01% of the total circulating supply of 727 million tokens. Because of that, even a direct sale would likely have little effect on market liquidity. Chainlink was recently trading around $7.66 (€7), with a market cap of $5.57 billion (€4.8 billion), but it was down 27% over the past month and nearly 49% over the past year.

The market is watching new supply signals carefully, but institutional interest, for example through ETF inflows, could potentially absorb the impact of a small sale. Whether the tokens are actually sold or just moved into a different custody setup should become clearer in the coming days as more transactions come in.

Why This Matters for European Crypto Investors

For European crypto investors, it’s important to understand that moves like this, where government agencies transfer seized tokens, are often part of structured settlements and do not necessarily mean immediate selling pressure. The involvement of major players like Coinbase Prime points to a controlled process, which matters when you’re trying to gauge market moves and assess the risks around tokens with large government holdings.

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