According to the announcement of BaFin's official website, BaFin, the German Financial Regulatory Authority, has stopped Ethena GmbH's new business of issuing USDe stablecoins in Germany, on the grounds that it has major organizational defects and compliance violations in the MiCAR licensing process, including improper asset reserve management and failure to meet capital requirements. BaFin has taken the following measures: freeze Ethena GmbH's asset reserves, limit management's disposal rights over assets, close related functions of its official website, and assign specialists to supervise the implementation. In addition, BaFin also suspected that Ethena GmbH illegally issued sUSDe securities tokens without providing the necessary prospectus. At present, Ethena GmbH customers are temporarily unable to redeem USDe tokens, but secondary market transactions are not restricted. As of now, about 5.4 billion USDe tokens are in circulation. BaFin will continue to evaluate whether it will completely reject its compliance license application under MiCAR.