Ceffu's $120M Ethena Withdrawal Raises Red Flags for USDe Stability

Ceffu, an institutional crypto custodian, has withdrawn $120 million in USDC from Ethena's Coinbase Prime custody wallets via six transactions over a single day. The withdrawal has raised questions about the stability of the USDe protocol.

Ethena is a protocol that offers a synthetic dollar (USDe) valued at over $4 billion, built on hedged investments and off-exchange settlement providers. Ceffu's withdrawal suggests that the framework sustaining this practice may be vulnerable to disruptions.

The transfer has sparked concerns among those who hold USDe or use it as collateral. However, Ethena's own documentation describes delegating and undelegating collateral from trading venues as routine operations carried out without delay or additional cost.