From Cointelegraph

March 21, 2025 11:40:00 AM:

BaFin, the German financial regulatory authority, has banned public sales of Ethena GmbH’s USDe due to violations of EU MiCAR regulations, accusing the firm of selling unregistered securities. BaFin ordered Ethena to freeze reserve assets, close the website, and halt new customer intake. Secondary token sales are unaffected.

Ethena GmbH applied for MiCA approval on July 29, 2024, hoping for grandfathering, but BaFin rejected it on March 21 citing organizational flaws and MiCA non-compliance. Currently, around 5.4 billion Ethena tokens are in circulation, many minted before MiCA’s enforcement.

Despite regulatory issues, Ethena continues receiving institutional investments. The firm raised over $100 million for iUSDe token and partnered with World Liberty Financial, backed by former US President Trump. MEXC crypto exchange invested $20 million in Ethena’s USDe to boost stablecoin usage.

Read more at Cointelegraph: German financial regulator prohibits sales of Ethena’s USDe