DeFi Protocol Stream Finance Suspends Withdrawals Following $93M Loss

Stream Finance suspended deposits and withdrawals after an external fund manager overseeing the protocol’s funds disclosed a loss of about $93m in fund assets, it said ￰1￱ team said it has retained Keith Miller and Joseph Cutler of law firm Perkins Coie to investigate the incident. “We are actively withdrawing all liquid assets and expect this process to be completed in the near term,” Stream said, adding that periodic updates will follow as more information becomes ￰2￱ the scope and cause of the loss are known, Stream said all withdrawals and deposits will remain paused. “Any pending deposits will not be processed at this time,” the statement said.

Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund ￰3￱ 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 Stablecoin XUSD Plunges as Traders Rush to Exit After Loss Disclosure The announcement hit sentiment across the protocol’s ecosystem. Earlier, its staked stablecoin XUSD broke from its $1 peg, dropping as much as 58% in 24 ￰4￱ pointed to heavy selling on Arbitrum-based venues as confidence ￰5￱ disclosure went live around 12.45 pm UTC, in a window that also saw reports of a large multichain exploit on ￰6￱ the events appear unrelated, the overlap in timing amplified anxiety across pockets of DeFi and accelerated defensive ￰7￱ hours, aggressive XUSD-to-USDC swaps on Camelot and Uniswap drove XUSD from $1 to $0.92.

As Stream confirmed the freeze on deposits and withdrawals pending the investigation, bids thinned and the price slid ￰8￱ 6.00 pm UTC on Nov. 3 and 2.00 am UTC on Nov. 4, liquidations and arbitrage pressure pushed XUSD to about $0.43. #PeckShieldAlert Staked Stream USD $XUSD has depegged, down ~58%. @StreamDefi ￰0￱ ￰9￱ — PeckShieldAlert (@PeckShieldAlert) November 4, 2025 No Evidence of Direct Exploit, But Leverage Concerns Deepen On-chain watchers framed the slide as a trust shock rather than a confirmed smart contract ￰10￱ noted that trading activity on Arbitrum dominated the move, with no direct evidence of a protocol exploit at the time of ￰11￱ over backing intensified on social ￰12￱ X user claimed that on-chain data showed roughly $170m in supporting assets against about $530m in outstanding loans, implying leverage above four ￰13￱ figures could not be independently verified in real ￰14￱ launched in early 2024 with a pitch of capital-efficient strategies that blend DeFi and traditional market ￰15￱ deposit USDC into a vault and receive XUSD, which targets yield through activities such as lending arbitrage, incentive farming and hedged market ￰16￱ protocol has also worked with external managers when internal capacity is ￰17￱ model helped Stream grow quickly through 2025, but reliance on external counterparties now sits at the center of the investigation.