DeFi platform Stream Finance faced a financial setback, prompting the company to launch an investigation led by Perkins Coie LLP.
The company, known for improving capital efficiency and yield generation through innovative decentralized financial protocols, announced on X that an external fund manager overseeing the Stream funds revealed a loss of approximately $93 million in the company’s assets, triggering a suspension of deposits and withdrawals while an investigation takes place.
In response to this unexpected loss, Stream engaged Perkins Coie LLP, a leading international law firm renowned for its expertise in corporate governance, financial investigations and regulatory enforcement.
The fintech litigation firm has retained attorneys Keith Miller and Joseph Cutler, experienced in handling internal investigations and cryptocurrency-related matters, to conduct a thorough investigation into the incident. CoinDesk has contacted Perkins Coie LLP for comment.
“Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and strong corporate governance,” Stream said on X.
Stream is currently in the process of delisting all of its liquid assets and expects to complete this process shortly.
The company has temporarily suspended all withdrawals and deposits, with pending deposits blocked until further notice. He pledged to provide periodic updates as additional information becomes available and the investigation progresses.
To fall
Stream Finance’s massive loss has raised uncertainty over how it will be settled between the protocol’s xUSD, xBTC, xETH holders and those who lent money against these tokens.
Among these, xUSD is widely used as collateral in several selected lending markets on platforms such as Euler, Morpho and Silo, operating on various blockchain networks including Plasma, Arbitrum and Plume.
According to pseudonymous analyst YAM, the total outstanding loans and borrowings secured by Stream-related collateral likely exceed $280 million. YAM noted that this figure excludes indirect exposures, such as those involving deUSD and other complex lending loops, and may not be completely accurate. deUSDOr The decentralized US dollar is a fully collateralized, yield-bearing synthetic dollar powered by the Elixir network.
CoinDesk has contacted Stream Finance via X for comment.
