According to BaFin's official website announcement, the German financial regulator BaFin has suspended Ethena GmbH's new business of issuing USDe stablecoins in Germany, citing significant organizational deficiencies and compliance violations in the MiCAR licensing process, including improper management of asset reserves and failure to meet capital base requirements. BaFin has taken the following measures: freezing Ethena GmbH's asset reserves, restricting management's right to dispose of assets, closing the relevant functions of its official website, and appointing commissioners to monitor implementation. In addition, BaFin also suspects that Ethena GmbH illegally offered for sale sUSDe security tokens without providing the necessary prospectus. Currently, Ethena GmbH customers are temporarily unable to redeem USDe tokens, but secondary market transactions are not restricted. As of now, there are around 5.40 billion USDe tokens in circulation. BaFin will continue to evaluate whether to completely reject its MiCAR compliance license application.