Germany's BaFin orders Ethena to stop issuing USDe tokens

Germany's Federal Financial Supervisory Authority (BaFin) has ordered Ethena GmbH to cease its business in connection with the USDe token offering. BaFin found serious deficiencies in Ethena GmbH's operations during the authorization process and imposed sanctions on it, resulting in the revocation of its USDe token offering. The company entered the German market under the transitional provisions of the European Crypto Asset Market Supervisory Authority (MiCAR), but withdrew its authorization application on April 3, 2025. As a result, Ethena GmbH cannot continue to operate in the European Union and must implement a redemption plan for its USDe tokens under the supervision of BaFin.
BaFin also imposed a mandatory fine of 600,000 euros and banned it from paying and selling to protect the company's assets from creditor debt.