Stream Finance, a DeFi protocol, disclosed a $93 million loss tied to an external fund manager, prompting the temporary suspension of all deposits and withdrawals. The company has engaged the law firm Perkins Coie LLP, specifically attorneys Keith Miller and Joseph Cutler, to lead a comprehensive investigation into the incident.
In response, Stream Finance is actively withdrawing all liquid assets and expects this process to be completed soon. The loss was revealed around 12:45 pm UTC on November 4, 2025, and the platform has urged users to document their balances and transaction history for potential asset recovery.
The announcement triggered a sharp decline in the protocol's staked stablecoin, XUSD, which broke its $1 peg and plummeted by as much as 58% in 24 hours. On Arbitrum-based venues like Camelot and Uniswap, aggressive selling drove XUSD's price down to approximately $0.43 by early November 4. On-chain analysts noted no direct evidence of a smart contract exploit, attributing the drop to a trust shock and concerns over high leverage, with unverified claims of backing assets around $170 million against $530 million in loans.
Stream Finance, which launched in early 2024, focuses on capital-efficient strategies blending DeFi and traditional market techniques, such as lending arbitrage and incentive farming. The incident underscores risks associated with external fund management in the crypto industry, and users are advised to monitor official updates closely.
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