Ethena responded that it has been operating through a BVI entity and its assets have not been frozen

Odaily News On March 21, the German Federal Financial Supervisory Authority (BaFin) announced that it would ban Frankfurt-based Ethena GmbH from publicly issuing its asset-referenced token USDe and required the freezing of the corresponding asset reserves through a custodian. BaFin stated that Ethena GmbH was suspected of issuing securities without submitting a prospectus and violating MiCAR regulations in terms of asset reserves and own funds requirements.
In response, Ethena said on social media that the MiCAR application of its subsidiary Ethena GmbH was not approved, but its business is mainly undertaken by Ethena Limited, a British Virgin Islands (BVI) registered entity, which supports most of the USDe minting and redemption operations. Currently, USDe continues to be fully reserved, assets are not frozen, and relevant terms will be updated within a week.