Ethena responded that it has been operated through BVI entities and its assets have not been frozen

On March 21st, the German Federal Financial Supervisory Authority (BaFin) announced a ban on Frankfurt based Ethena GmbH from publicly issuing its asset reference token USDe and requested that the corresponding asset reserves be frozen through a custodian institution. BaFin stated that Ethena GmbH is suspected of issuing securities without submitting a prospectus and violating MiCAR regulations in terms of asset reserves and self owned fund requirements. Ethena responded on social media that its MiCAR application for Ethena GmbH was not approved, but its business is mainly undertaken by Ethena Limited, a registered entity in the British Virgin Islands (BVI) that supports the vast majority of USDe minting and redemption operations. The current USDe continues to have full reserves and assets have not been frozen. The relevant terms will be updated within a week.