• Ethena Labs denies accusations of using 180 million locked ENA tokens to farm Ethereal rewards.
  • The team confirmed that all Ethena Foundation tokens are not eligible for rewards.
  • Community members accused Ethena's team of using 25% of sENA's supply to farm sats in Season 3.

Ethena Labs (ENA) released a post on Monday stating they did not use locked ENA tokens to farm sats rewards on the Ethereal decentralized exchange (DEX) as community members suspected. However, ENA continued its decline, dropping nearly 4% in the past 24 hours.

Ethena Labs clears allegations following wallet activity, ENA price declines

In an X post on Monday, synthetic dollar protocol Ethena Labs denounced claims that it had used 180 million ENA tokens to farm staking rewards from Ethereal. According to the post, no locked tokens belonging to investors or team members were held as staked Ethena (sENA) to earn rewards.

The team also noted that the ENA tokens moved from key suspicious wallets belong to the Ethena Foundation. None of those tokens were locked, as Ethena Labs claims to have moved them based on their unlock schedule.

Additionally, the foundation confirmed that the tokens will not be eligible for staking rewards or other Ethereal benefits.

The accusations against Ethena Labs began after crypto investigator Nomad released a thread on social media site X alleging that the team held 25% of sENA tokens in the latest sats farming season.

Nomad revealed that suspicious Coinbase Prime Custody addresses received over 3 billion ENA tokens in August, likely designated as locked tokens for the Ethena Labs team. 

He further suggested that six crypto wallets linked to Ethena received 180 million ENA tokens from these custody addresses in October following the sENA staking launch in September.

These wallets have since appeared on the Ethena leaderboard for sats farming, raising questions about the implications for reward distribution among participants.

Ethena Labs has also been subject to criticism following the displeasure of its community members after the conclusion of its previous airdrop season.

However, the team mentioned that they would include a new section to their platform's UI. This will reveal the total sENA that are eligible for future airdrops to users, excluding tokens locked in Liquify contracts.

Meanwhile, Ethena's ENA token is down nearly 4% on the day, likely fueled by fears stirred by community members on the team's transparency.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement

Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement

Supra’s 25% surge on Friday calls attention to lesser-known cryptocurrencies as Bitcoin, Ethereum and XRP struggle. Cosmos Hub remains range-bound while bulls focus on a potential inverse head-and-shoulders pattern breakout.

More Cryptocurrencies News
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin price remains under selling pressure around $82,000 on Friday after failing to close above key resistance earlier this week. Donald Trump’s tariff announcement on Wednesday swept $200 billion from total crypto market capitalization and triggered a wave of liquidations.

More Bitcoin News
Can Maker break $1,450 hurdle as whales launch buying spree?

Can Maker break $1,450 hurdle as whales launch buying spree?

Maker is back above $1,300 on Friday after extending its lower leg to $1,231 the previous day. MKR’s rebound has erased the drawdown that followed United States President Donald Trump’s ‘Liberaton Day’ tariffs on Wednesday, which targeted 100 countries.

More Maker News
Gold shines in Q1 while Bitcoin stumbles

Gold shines in Q1 while Bitcoin stumbles

Gold gains nearly 20%, reaching a peak of $3,167, while Bitcoin nosedives nearly 12%, reaching a low of $76,606, in Q1 2025. In Q1, the World Gold ETF's net inflows totalled 155 tonnes, while the Bitcoin spot ETF showed a net inflow of near $1 billion.

More Bitcoin News
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP