Germany's BaFin orders Ethena to stop issuing USDe tokens related to its business

According to Golden Finance, the German Federal Financial Supervisory Authority (BaFin) has ordered Ethena GmbH to cease its business related to the issuance of USDe tokens. BaFin discovered serious operational deficiencies in Ethena GmbH during the authorization process and imposed sanctions, resulting in the revocation of its USDe token issuance. The company entered the German market under the transitional provisions of the European Cryptocurrency Market Regulation Authority (MiCAR), but withdrew its authorization application on April 3, 2025. Therefore, Ethena GmbH is unable to continue operating in the European Union and must implement its USDe token redemption plan under the supervision of BaFin. BaFin also imposed a mandatory fine of 600000 euros on it and prohibited its payment and sale to protect the company's assets from creditor debts.