Ethena GmbH, which has its registered office in Frankfurt am Main, must reverse the issuance of its USDe tokens. BaFin ordered the company to do so on 14 April.

As part of the winding-up process, Ethena GmbH is obliged to cease its business and to reverse its transactions that were subject to an authorisation requirement so that it can meet its creditors’ claims. BaFin is monitoring the winding-up process and can take further measures in order to protect customers and safeguard the integrity of the financial system. Ethena GmbH was not able to provide BaFin with any credible information on the number of customers within the European Union that had executed transactions with the company.

BaFin has imposed measures on the basis of the European Markets in Crypto Assets Regulation (MiCAR) for the first time.

Authorisation procedure terminated – winding-up

Ethena GmbH had been issuing an asset-referenced token called USDe. An asset-referenced token is a crypto-asset that purports to maintain a stable value by referencing other values, rights or currencies. Ethena GmbH states that it exclusively holds other crypto-assets as reserve assets. The value of one USDe token is purportedly kept stable at the level of one US dollar by, among other methods, using hedging derivatives.

Ethena GmbH entered the German market using a transitional provision under MiCAR. This provision allows issuers that issued asset-referenced tokens under the law applicable before 30 June 2024 to continue to do so until they are granted or denied authorisation. In July 2024, the company submitted an application to BaFin for authorisation to issue its USDe tokens.

Ethena GmbH withdrew this application on 3 April 2025, resulting in the termination of the authorisation procedure. The end of the authorisation procedure is also the reason that BaFin ordered the winding-up of business. Ethena GmbH can no longer use the transitional provision under MiCAR and cannot conduct any business in the European Union.

The company must now carry out the redemption of its USDe crypto tokens based on a detailed plan under the supervision and subject to the agreement of BaFin. Ethena GmbH must inform its customers about the details of the redemption process as soon as possible. BaFin is in close communication with the company in this regard. Trading in USDe tokens on the secondary market is no longer permissible in the European Union.

Coercive fine and ban on payments and sales

In the course of the now terminated authorisation procedure, BaFin found serious deficiencies in the business organisation of Ethena GmbH as well as infringements of the requirements under MiCAR. On 21 March 2025, BaFin imposed initial supervisory measures, which the company did not fully comply with.

As a result, on 4 April 2025, BaFin imposed a coercive fine on Ethena GmbH in the total amount of EUR 600,000. In addition, BaFin issued a ban on payments and sales with the aim of safeguarding the assets of the company so that it can meet its obligations to its creditors.

The basis for BaFin’s intervention is the German Cryptomarkets Supervision Act (Kryptomärkteaufsichtsgesetz – KMAG). Under this law, BaFin is tasked with counteracting irregularities in crypto markets. BaFin imposes measures if the security of assets that customers have entrusted to companies that operate in crypto markets is jeopardised.

The measures ordered by BaFin are immediately enforceable but not yet final.

On 22 April 2025, Ethena GmbH lodged an objection to BaFin’s decisions.