The German financial supervision authority Bafin said that he had identified “serious gaps” in the stablecoin of the Synthetic USDE of Ethena.
Ethena is the yield generator protocol. Stablecoin has a market capitalization of $ 5.4 billion.
Ethena said on X that he “will continue to assess alternative executives”, after being informed that “the application in the context of the Micar regulation will not be approved”.
In a statement, Bafin said that shortcomings are linked to “the bank’s commercial organization and the violations of micro requirements, such as those concerning asset reserves and compliance with capital requirements”.
“Bafin also has reasonable reasons to suspect that Ethena GmbH publicly offers titles in Germany in the form of” Susde “token of Ethena Opco. Ltd. without the required titles,” said the regulator.
According to CoinmarketCap Data Coinmarketcap Data Data in the last 24 hours, extending the losses after the announcement.
