German financial regulator prohibits sales of Ethena’s USDe

German regulator halted USDe token offering, citing serious compliance failures and potential securities law violations.

BaFin, the German financial regulatory authority, has prohibited all public sales of Ethena GmbH’s USDe (USDe) — a synthetic dollar — claiming the token violates the European Union’s MiCAR regulations and accused the firm of selling unregistered securities in the region.

BaFin told Ethena to freeze the reserve assets that back the token, close down the website portal, and ordered the firm to stop taking new customers, the regulator wrote in an announcement.

BaFin also appointed a representative to monitor the ongoing situation with Ethena. In a translated statement, the regulator wrote:

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