Decentralized finance (DeFi) protocol Stream Finance announced that it has temporarily suspended all withdrawals and deposits due to a $93 million loss at one of its managed funds.
The company announced in a statement Monday night that the loss was reported by an external fund manager who manages its assets.
Stream Finance shared on the X platform, “The fund manager reported a loss of approximately $93 million in Stream assets. We are in the process of withdrawing the remaining liquid assets and expect the transaction to be completed shortly.”
The company stated that all withdrawals and deposits have been suspended until the extent and causes of the loss are fully understood, and any pending transactions will not be processed during this period.
Investigation and Legal Counsel
To investigate the cause of the incident, Stream announced that it has partnered with Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP. Perkins Coie has previously advised numerous fintech and crypto companies on compliance and cybersecurity matters.
Stablecoin De-Pegging
On the same day, security firm PeckShield warned that Stream Finance's stablecoin, Staked Stream USD (xUSD), had lost its peg.
According to CoinGecko data, xUSD had fallen to $0.53 as of Tuesday morning. The company announced that it would update its users regularly on developments.