Stream Finance, a decentralized finance (DeFi) protocol, has announced the temporary suspension of all withdrawals and deposits after an external fund manager disclosed a $93 million loss in the company’s assets. The platform made the announcement late Monday night via its official post on X, stating that it is working to withdraw all remaining liquid assets and expects this process to be completed soon.
The company clarified that until it fully assesses the scope and causes of the loss, no withdrawals or deposits will be processed. Furthermore, pending deposits will not be processed during this period. Stream Finance has pledged to provide periodic updates as more information becomes available.
Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.
In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive…
— Stream Finance (@StreamDefi) November 4, 2025
Investigation Underway with Legal Experts
To address the situation, Stream Finance has enlisted the services of legal experts Keith Miller and Joseph Cutler from the law firm Perkins Coie LLP. The firm has a strong background in advising fintech companies on matters related to legal, compliance, and cybersecurity issues.
This indicates that Stream Finance is taking a serious approach to investigating the incident and ensuring proper handling of the situation.
Concerns Over Depegging of xUSD
In addition to the withdrawal suspension, the security firm Peckshield warned that the platform’s stablecoin, Staked Stream USD (xUSD), had depegged. According to Peckshield’s analysis, xUSD had fallen to $0.53, a significant drop from its $1 peg. This is another troubling sign for the protocol as it further indicates instability within the platform’s operations.
Investor Confidence at Risk
The temporary suspension of withdrawals, combined with the drop in the value of xUSD, has raised concerns about the stability and transparency of the Stream Finance platform. Investors who have entrusted their assets to the protocol are now left in a state of uncertainty, unsure of when or how their funds will be accessible again.
Stream Finance has committed to providing further updates as they work through the recovery process. However, the loss and subsequent actions taken by the platform may have a lasting impact on user trust and the broader DeFi ecosystem, highlighting the risks associated with external asset management in DeFi protocols.
In the coming weeks, attention will likely remain focused on how Stream Finance navigates the aftermath of this loss and what steps it takes to restore confidence among its users and the wider DeFi community.