Ethena Response to BaFin Ban: USDe Not Frozen, Minting and Redemption Services Operating Normally

March 21st. According to an official statement from Ethena, BaFin in Germany has notified that the MiCAR compliance application of Ethena GmbH, which is based in Frankfurt, will not be approved. Nevertheless, this decision does not have an impact on the current exchange listing of USDe or the minting and redemption services provided through the British Virgin Islands entity Ethena (BVI) Limited. Ethena emphasized that USDe remains fully backed by assets and is not subject to any "freeze." They will explore alternative regulatory channels in the future and will revise the relevant terms of service within the next week to reflect the current changes. This event does not affect the normal usage process for the majority of users. It is reported that the German financial regulatory authority BaFin discovered serious deficiencies during the USDe token registration process at Ethena GmbH and promptly took enforcement actions. BaFin prohibited Ethena GmbH from further publicly offering its USDe token and instructed the company to freeze the corresponding asset reserves through a custodian. BaFin also appointed a special supervisor to oversee the implementation of these measures. Additionally, BaFin publicly expressed doubts that Ethena GmbH in Germany publicly offered securities without the necessary prospectus. BaFin is currently reviewing further regulatory measures, including the prohibition of the public offering of these securities.