Renowned blockchain intelligence platform Arkham is working to comply with tax obligations in the United States. It has withdrawn 304.5 million ARKM tokens, worth around $487.24 million, from its vesting contract and transferred them to Coinbase Prime custody.
The transaction, documented on Arkham’s platform, includes 115.8 million ARKM tokens, worth $185.28 million, owned by the company’s CEO Miguel Morel.
Arkham Token Transfer Details
On July 17, Arkham had announced on X that the team’s tokens needed to be transferred to Coinbase Prime starting July 18 to ensure proper tax payments and regulatory compliance. This transfer means that the specific unlocking and transfer status of these tokens will no longer be visible on the blockchain.
This transfer marks the start of a linear unlocking cycle for the team, investors, and advisers, which began on July 17. Currently, the daily unlocking volume for these groups is around 324,200 ARKM, valued at $518,000. This process is part of a predetermined three-year unlocking schedule that remains unchanged despite the recent developments.
Crypto Taxation in the U.S.
For U.S. tax purposes, digital assets, including cryptocurrencies and non-fungible tokens (NFTs), are considered property rather than currency. In the same year that bitcoin was launched, the US Congress enacted legislation to strengthen tax reporting obligations for financial intermediaries.
This legislation required financial institutions to provide taxpayers and the IRS with detailed information on their tax filings. Under this ruling, companies must calculate taxes based on the ‘cost basis,’ which is the difference between an asset’s original purchase price and its sale proceeds, similar to current cryptocurrency capital gains tax rules.
Coinbase’ Role
Law enforcement agencies also use the services of U.S. crypto exchange Coinbase to securely store or dispose of cryptocurrencies confiscated in criminal investigations.
According to official documents, the U.S. Marshals Service has entrusted Coinbase Prime with handling assets associated with the dissolved FTX cryptocurrency exchange and the infamous Silk Road platform. The company received a contract valued at over $32 million for this responsibility.
Using Coinbase Prime’s custody services, Arkham ensures that the tokens are managed under stringent security protocols. This move underscores Arkham’s commitment to regulatory adherence and robust security measures.
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