Etherna Labs on Wednesday announced that the German Federal Financial Supervisory Authority, Bafin, and Etherna GMBH, the company’s arm, joined a plan of redemption for USDE Stablecoin holders.
The regulator Says It started a 42-day redemption process for stablecoin holders. Bafin said the USDE holders will have up to August 6 to declare redemption claims directly against Etherna GMBH. The process is administered by a special representative appointed by Bafin.
After the deadline, Etherna GMBH could be considered officially injured within Germany, the European Union and the European Economic Area (EEA). This means that any claims from August 7 forward should be done by the affiliate of the company, Ethena (BVI) Ltd.
ETHENA LABS Says That after the redemption plan was implemented, the Etherna GMBH had no “residual issues related to the operations associated with the USDE.” However, the company does not indicate whether it has plans to re -enter EU and EEA markets.
Bafin ended a four -month conflict with Etherna GmbH
The news came after a four -month conflict between Etherna and the German German regulator. On March 21, Bafin Barriers Etherna Gmbh from the public offering Its USDE stablecoin, citing violations of EU markets in crypto-assets (MICA) regulation.
The government agency has accused the company of selling unregistered security through tokens carrying Susde, which is linked to USDE Stablecoin.
The regulator has implemented penalties, including freezing the USDE reserves assets, close the company and portal website and orders the company to stop offering services to new users.
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On April 15, the Etherna Labs all of the operations began to stop of its German subsidiary. At this time, the company said it would no longer pursue MICA’s permission in Germany.
The company added that its German subsidiary has not conducted any mininting or redemption activities for the USDA since March 21, when the regulator applied the actions that implemented it to Etherna GMBH.
Etherna GMBH applied for MICA’s permission on July 29, 2024. However, Bafin declined the application in March, citing compliance failures from Ethena GMBH.
Despite this, nearly 5.6 billion tokens remain in circulation, most of which were issued before the MICA framework was found and found worldwide.
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