US Government Moves $984K in Seized FTX Funds to Coinbase

Steady attention without excessive speculation.

According to Arkham, the wallet sits in its “U.S. Government: FTX Alameda Seized Funds” cluster. In total, the recent activity window moved about $984K of seized assets. At least $768K of that went to Coinbase Prime.

What the On-Chain Data Shows

The main transaction is public on Etherscan. It records a single LINK transfer at block 25287623. The timestamp reads June 10 at 02:23 PM UTC.

The funds left wallet 0x3e3740DDF791747f6c75A468bc28a64D0080fF7C. Arkham tags that address as US government seized money. The tokens then landed at 0x6351e6d72b102c0bCaC77DAd5a20171506acA08D, a known Coinbase Prime deposit address.

A second, tiny transfer of 1 LINK reached the same destination in the same window. Arkham also noted other small outflows. Those included CHZ, AAVE, and BAL from the same cluster over the preceding hours.

So the headline $984K is not one transaction. Instead, Arkham aggregates the recent tranche of seized FTX funds. The LINK transfer is by far the largest single piece. The implied LINK price at the time was roughly $7.81.

This pattern is familiar. Earlier in 2026, similar wallets shifted about $1.9 million in altcoins toward the same rails. Larger batches moved in late 2024 as well. Each event follows the same playbook of small, traceable transfers rather than a single large dump.

Why Seized FTX Funds Keep Going to Coinbase Prime

These transfers are not random. In July 2024, the US Marshals Service picked Coinbase Prime as its custody partner. The five-year contract covers large-cap seized digital assets, sometimes called Class 1 tokens.

As a result, big tokens like LINK now route to Coinbase Prime when the government manages them. The platform handles custody, OTC execution, and compliant liquidation for the agency. This setup keeps the process orderly and auditable.

A move to a Prime deposit address does not prove an immediate sale. Instead, it usually signals a custody handoff. It can also mark preparation for a structured sale through an OTC desk. That approach avoids dumping tokens on the open market.

That distinction matters for readers watching for selling pressure. On-chain data alone cannot confirm the next step. The government may sell now, or it may hold the assets at Prime for longer.

On-chain, these moves look mundane. They appear as standard ERC-20 transfer calls from a labeled wallet to an exchange deposit address. Arkham builds its label by clustering known seizure transactions and public records. That work lets it tag the sender as US government money.

How This Fits FTX Creditor Repayment

US government FTX seized funds trace back to the November 2022 collapse of FTX and Alameda Research. Since then, the Department of Justice and the US Marshals Service have seized linked assets. Many of those tie to Sam Bankman-Fried and related entities.

The seizures form part of a broader forfeiture above $11 billion ordered in the criminal case. Eventually, much of this money flows to the FTX Estate. The estate then uses it to repay creditors.

Repayment is already moving. The FTX Recovery Trust began a fourth distribution of roughly $2.2 billion on March 31, 2026. Earlier rounds had already returned billions more.

The estate operates under CEO John J. Ray III, who also led the bankruptcy. Its distributions run through the District of Delaware court process. Cumulative payouts have already reached billions of dollars across prior rounds.

Against that scale, a $984K tranche is small. Still, it shows the machinery keeps running. Forfeited crypto continues to convert into value for victims.

A Custody Move, Not Confirmed Selling

The size here is negligible for the market. LINK trades more than $200 million on a typical day. So this transfer sits well under 0.4% of daily volume.

Because of that, no clear price or volume spike followed the June 10 move. Broader crypto markets showed no attributable reaction either. The FTT token also stayed quiet around the event.

Reactions on X split along familiar lines. Some users welcomed the move as progress toward creditor repayment. Others framed it as the government dumping bags again.

Skeptics also question Arkham’s labeling. Yet analysts widely cross-reference its tags. For now, no credible on-chain evidence contradicts the view that these seized FTX funds are bound for the FTX Estate.

What Comes Next

Watchers will track the LINK at Coinbase Prime closely. The key question is whether the desk liquidates it soon or holds it for a structured sale. The exact remaining balance of FTX and Alameda money in government wallets also stays unclear.

Expect more periodic moves as the estate works through its schedule. Each transfer offers a small, transparent window into the process. It shows how the government monetizes forfeited crypto for victims.

This article is for informational purposes only and is not financial advice. Always do your own research before making any investment decision.