US Government Moves Seized FTX Chainlink Tokens to Coinbase Prime, Sparking Sale Speculation
On Wednesday, a wallet associated with the US government's seizure of FTX assets transferred 98,590 Chainlink (LINK) tokens, worth approximately $768,000, to Coinbase Prime. This move has revived speculation about a potential sale. The funds originate from assets confiscated after the collapse of FTX and Alameda Research in November 2022. A federal judge ordered Sam Bankman-Fried to forfeit $11 billion, with recovered funds directed to victim compensation. The US Marshals Service selected Coinbase Prime in 2024 to custody and trade large-cap digital assets. Historically, such deposits can precede custody changes, OTC deals, or liquidations. However, the transferred amount represents less than 0.4% of LINK's daily trading volume and only 0.01% of circulating supply, suggesting minimal market impact even if sold. Analysts see limited risk of a major sell-off, though the token has declined 27% over the past month and 49% over the past year. The wallet's next transaction will clarify whether this is routine management or the start of liquidation.
Key facts
- US government wallet moved 98,590 LINK ($768K) to Coinbase Prime.
- Funds originate from FTX/Alameda assets seized after 2022 collapse.
- US Marshals selected Coinbase Prime in 2024 for large-cap crypto custody.
- Transferred amount is less than 0.4% of LINK's daily trading volume.
- LINK price down 2% in 24 hours, 27% over past month.