Germany's BaFin orders Ethena to cease issuing USDe token-related business

The German Federal Financial Supervisory Authority (BaFin) has ordered Ethena GmbH to cease its operations related to the issuance of USDe tokens. 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 issuance. The company entered the German market under transitional provisions of the European Crypto Asset Market Regulation (MiCAR), but withdrew its authorization application on April 3, 2025. Therefore, Ethena GmbH cannot continue to operate in the EU and must implement a redemption plan for its USDe tokens under BaFin's supervision. BaFin also imposed a compulsory fine of 600,000 euros on it and prohibited payments and sales to protect company assets from creditors' claims.