The German economic regulator Bafin said the identified “serious defects” in the synthetic USDE stableCoin.
Ethena is the dividend -generating protocol. StableCOin has a market capital of $ 5.4 billion.
Ethena said on X that it will “continue to evaluate alternative frameworks” after being told that “the application under the Micar Regulatory framework will not be approved.”
In a statement, Bafin said the deficiencies are related to “the bank’s business organization and violations of mikler requirements, such as those relating to asset reserves and compliance with capital requirements.”
“Bafin also has a reasonable reason to assume that Etaa GmbH publicly offers securities in Germany in the form of ‘Susde’ tokens of Ethena Opco. Ltd. Without the required securities prospectus,” the regulator said.
Ethena’s Ena -Tokenhad fell 6.5% over the last 24 hours and expanded losses after the message, according to CoinMarketcap data.
