4 days ago
The German fiscal supervisory authorization BaFin said it identified "serious deficiencies" successful Ethena's synthetic USDe stablecoin.
Ethena is the yield-generating protocol. The stablecoin has a marketplace headdress of $5.4 billion.
Ethena said connected X that it volition "continue to measure alternate frameworks," aft being notified that the "application nether the MiCAR regulatory model volition not beryllium approved."
In a statement, BaFin said that the deficiencies are related to the "bank's concern enactment and violations of MiCAR requirements, specified arsenic those regarding plus reserves and compliance with superior requirements."
"BaFin besides has tenable grounds to fishy that Ethena GmbH is publically offering securities successful Germany successful the signifier of 'sUSDe' tokens of Ethena OpCo. Ltd. without the required securities prospectus," the regulator said.
Ethena's ENA tokenhad dropped 6.5% successful the past 24 hours, extending losses pursuing the announcement, according to CoinMarketCap data.
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