Crypto Biz: Bitfarms gets new board after months of power struggles

The conflict between Bitfarms and Riot Platforms has been resolved through governance changes. 

The companies announced a settlement on Sept. 23, with Riot agreeing to withdraw proposals and support board expansion, adding Amy Freedman and another member, while Andrés Finkielsztain stepped down. 

In addition, both companies agreed to a standstill arrangement lasting until 2026, preventing further hostile actions between the Bitcoin (BTC) miners. The settlement is expected to restore Bitfarms’ leadership amid previous disputes, including those linked to former CEO Geoffrey Morphy.

Riot, which owns an 18.9% stake in Bitfarms, has been pushing for board changes and a takeover since May 2024. 

This week’s Crypto Biz also looks at BNY’s crypto custody, BlackRock’s new stance on BTC settlements, PayPal’s crypto services, Terraform’s bankruptcy and an exclusive interview with Binance CEO Richard Teng.

BNY nears crypto custody for ETFs after SEC softens SAB 121 stance

BNY Mellon is moving closer to offering Bitcoin and Ether (ETH) custody services for its exchange-traded fund (ETF) clients after the Securities and Exchange Commission eased its stance on crypto accounting rules under the Staff Accounting Bulletin (SAB) 121. The guideline required firms holding crypto assets for clients to record them as liabilities, posing a setback for the crypto industry since its introduction in April 2022. With the SEC’s revision, BNY Mellon is exempt from the rule, though it still needs authorization from other regulators before starting to offer the services. Other financial institutions may receive similar relief. “Certain broker dealers and custody banks have sufficiently demonstrated to SEC staff that their fact patterns are different from those described in SAB 121,” said the SEC. 

BlackRock Bitcoin ETF demands 12-hour BTC withdrawals from Coinbase

BlackRock has filed an amendment for its Bitcoin ETF, requiring Coinbase, the ETF’s custodian, to process withdrawals within 12 hours of a client request. The filling follows investor concerns about Coinbase’s onchain settlement practices, with some questioning whether the Bitcoin ETFs were fully backed by real BTC. Coinbase CEO Brian Armstrong clarified that all ETF transactions are settled onchain, despite not sharing all ETF addresses publicly. Coinbase is the custodian for 10 of 11 spot Bitcoin ETFs and eight of the nine recently approved Ether ETFs in the US.

PayPal enables business accounts to buy, sell and trade crypto

PayPal has expanded its crypto services to business accounts, allowing United States merchants — except in New York — to buy, sell and trade cryptocurrencies. Business owners can now access the same crypto functionalities available to individual users, with the option to withdraw assets to external wallets or cold storage. According to PayPal, the new feature aims to meet the growing merchant demand for crypto services in the country. The company began allowing retail customers to buy, sell and hold crypto directly from their PayPal and Venmo accounts in 2020. 

Terraform Labs may close products, services in bankruptcy wind-down

Terraform Labs has announced plans to shut down several products and services by Oct. 30 unless third parties take them over. The move is part of a bankruptcy wind-down after the company settled with the SEC in June 2023. Ongoing discussions with potential buyers have yet to yield results, and the company has urged its community to take responsibility for some of the services. Products and services like the Luna Foundation Guard and blockchain APIs are on the list for closure or sale.

Before you go: In an exclusive interview with Cointelegraph, Richard Teng, CEO of Binance, talks about Binance after CZ, how it has recovered, and the major changes implemented at the exchange since he took over.

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