Ethena responds to BaFin's ban: USDe has not been frozen, minting and redemption services are operating normally.

On March 21, according to an official statement from Ethena, the German BaFin has notified its Frankfurt-based entity Ethena GmbH that the MiCAR compliance application will not be approved, but the decision will not affect USDe's current exchange listing and minting and redemption services through the BVI entity Ethena (BVI) Limited. Ethena emphasized that USDe remains fully asset-backed and is not "frozen". Other regulatory pathways will be evaluated in the future and the relevant Terms of Service will be revised in the coming week to reflect the current changes. This event does not affect the normal flow of most users. It is reported that the German financial regulator BaFin found a serious flaw in the USDe-Token registration process of Ethena GmbH and immediately took mandatory measures. BaFin prohibits Ethena GmbH from continuing to publicly offer its USDe-Token and instructs the company to freeze the corresponding asset reserves through the custodian. BaFin has also appointed a Special Ombudsman to oversee the implementation of these measures. In addition, BaFin publicly expressed suspicion that Ethena GmbH had publicly offered securities in Germany without the necessary securities prospectus. BaFin is reviewing further regulatory measures, including a ban on the public offering of these securities.