Bafin, the German financial regulation authority, prohibits all USDE public sales of Ethena GMBH (Use) – a synthetic dollar – the token claim violates the regulations of the European Union regulations and accused the firm of selling unregistered security in the region.
Bafin ordered Ethena to flreeze reserve possessions to return the token, close the website portal, and ordered the company to stop hiring new customers, the regulator wrote in a announcement.
Bafin also appointed a representative to monitor Etha’s ongoing situation. In a translated statement, the regulator wrote:
“Bafin also has reasonable grounds to suspect that Ethena GMBH in Germany sells security in the form of Susde tokens from Etherna Opco. Ltd. without the necessary prospectus.”
“USDE and SUSDE tokens are interrelated in such a way that investors can receive a Susde token in exchange for a USDE token,” the statement read.
Despite the ban on the main sales and release of the token, the second sales of the token is not prohibited or affected, the regulator said.
In a statement to X, Etherna Labs said supporting the USDE remains unaffected, and the token can still be redeemed by Etherna BVI Limited.
Source: ETHENA LABS
ETHENA GMBH files for MICA approved
Eden submitted A request for approved regulation under MICA on July 29, 2024, and the company is expected to be “grandfather” in the existing regulation framework.
However, Bafin denied the application on March 21, citing the “serious shortage of business organization” and a lack of compliance with the MICA framework.
Bafin has identified that there are currently around 5.4 billion Etena tokens in circulation. However, many of these tokens were printed outside German cover and before Mica took place.
Ethena attracts investment for its products
Ethena continues to attract institutional investment for its products, risks associated with synthetic dollars Despite this.
Eden Raised more than $ 100 million from investors In February 2024 to launch a new token called Iusde dedicated to institutional investors.
The firm is also Working with World Liberty FinancialA decentralized financial protocol (DEFI) initiated by US President Donald Trump in December 2024.
As part of the agreement, the World Liberty Financial purchased 500,000 ETA tokens – the Etherna management token.
On February 26th, Mexc Crypto Exchange announced a $ 20 million investment in the USDE of Ethena To promote the use of stablecoin.
