Farcastles

The German Federal Financial Supervisory Authority (BaFin) has identified serious deficiencies in the approval process for USDe tokens issued by Ethena GmbH. Consequently, BaFin has issued an order for immediate action to prevent the public offering of these tokens. Additionally, the company has been instructed to ensure that the custodian of its assets freezes the corresponding reserves.

In response, Ethena Labs stated that this decision will not affect the current listings of USDe or the minting and redemption process of the tokens through Ethena (BVI) Limited, which serves most of its users. The company assured that USDe remains fully backed, no assets have been "frozen," and all assets are available for redemption. Ethena Labs also noted that it will review its terms and conditions in the coming week.