Ceffu Pulls $120M From Ethena Amid Custody Concerns

Crypto custodian Ceffu has withdrawn $120 million in USDC from Ethena's custody wallets, according to on-chain tracking data. The transactions took place on August 24, 2026, and redistributed liquidity across contracts of the synthetic currency USDe issuer.

Ethena's protocol uses an Off-Exchange Settlement (OES) model, which delegates collateral using Multi-Party Computation (MPC) systems without depositing capital directly onto derivatives platforms. This design aims to mitigate counterparty risk against potential centralized exchange insolvencies.

Analysts from Onchain Lens suggest that withdrawals of this magnitude typically correspond to routine margin rebalancing or the settlement of delta-neutral hedging contracts, which are necessary for maintaining the peg stability of USDe.