Arkham Withdraws $487 Million in Tokens to Coinbase Prime for Tax Compliance and Enhanced Security

Arkham has made a notable move to ensure tax compliance by withdrawing 304.5 million ARKM tokens, worth around $487.24 million, from its vesting contract and transferring them to Coinbase Prime custody. This transfer includes 115.8 million ARKM tokens that belong to Arkham’s CEO, Miguel Morel. According to Arkham, the decision was made to comply with the regulatory and tax requirements, and they informed their community about this move on July 17. The company emphasized that the transfer was necessary to facilitate proper tax payments while preserving regulatory oversight.

The tokens will now be managed by Coinbase Custody, which plays an important role in managing the vesting of these assets. This transfer means that the unlocking and transfer status of these tokens will not be traceable on the blockchain, adding an extra layer of security. The unlocking process has started, with an approximate daily volume of 324,200 ARKM tokens, valued at $518,000. This process is part of a plan that spans three years, ensuring that the unlocking adheres to a predetermined schedule even with the shift to Coinbase Prime.

Furthermore, Arkham’s decision to use Coinbase Prime reflects a commitment to maintaining robust security for their assets. By leveraging the services of Coinbase, which has a proven track record in managing cryptocurrencies, Arkham aims to provide additional assurance to investors and stakeholders. This action aligns with the broader trend of increased regulatory scrutiny in the cryptocurrency sector. Companies in this realm are now required to adhere to strict tax reporting laws, making it crucial to manage asset transfers carefully.