Stream Finance halts withdrawals and deposits after $93 million loss disclosed

Quick Take

Stream Finance said an external fund manager disclosed a $93 million loss in its fund assets on Monday.
The project has suspended withdrawals and deposits, and is working with a law firm to investigate the incident.

DeFi protocol Stream Finance has temporarily suspended all withdrawals and deposits after an external fund manager overseeing its assets disclosed a loss of roughly $93 million, the company said late Monday night.

Stream Finance said in a post on X that an external fund manager disclosed a $93 million loss in Stream fund assets yesterday, and it is working to withdraw all remaining liquid assets and expects the process to be completed in the near term.

"Until we are able to fully assess the scope and causes of the loss, all withdrawals and deposits will be temporarily suspended," said Stream, noting that it will provide periodic updates for further information.

Pending deposits will not be processed during this time, Stream added.

To investigate the incident, Stream said it is engaging Keith Miller and Joseph Cutler of law firm Perkins Coie LLP to lead the review. Perkins Coie has previously advised a range of fintech firms on legal, compliance, and cybersecurity matters.

Earlier on Monday, security firm Peckshield warned that Staked Stream USD (xUSD) has depegged. It has dropped to $0.53 as of 00:50 a.m. ET Tuesday, according to CoinGecko data.

The Block has reached out to Stream for further information.

This is a developing story.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.