Panic At Stream Finance — $93 Million Loss Forces Platform Freeze

Stream Finance paused all deposits and withdrawals on its platform after reports disclosed that an external fund manager tied to the protocol suffered a loss of about $93 ￰0￱ to Stream’s disclosure, the move came as the team sought time to investigate the damage and to stabilize core ￰1￱ Suspended After Major Loss Reports have disclosed that user deposits on the protocol were roughly $160 million, while total assets that had been put to work in various strategies exceeded $520 ￰2￱ protocol’s stable token, xUSD, lost its close tie to $1 and traded near $0.51 at one point, a sharp loss of confidence that pushed some users to pull funds off the platform.

On-chain trackers show total value locked fell from about $204 million at the end of October to near $98 million after the news spread. 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 Stream Finance: Investigation And Legal Steps According to public notices, Stream retained Perkins Coie LLP to lead an independent review and legal ￰4￱ named include Keith Miller and Joseph Cutler, who will be involved in examining what happened and advising on next ￰5￱ firm’s involvement suggests that legal and forensic work will run alongside technical ￰6￱ exact cause of the loss has not been ￰7￱ list a range of possibilities — from failed trading positions managed off-chain to a bad investment decision by a third party — but no definitive root cause has been ￰8￱ And What It Could Mean For Other Platforms Some observers warn that troubles at Stream could ripple outward because xUSD and assets tied to the protocol are used as collateral elsewhere in the DeFi ￰9￱ or forced sales are a risk when a stable token loses its peg, and other platforms that accepted xUSD might now face sudden ￰10￱ on current on-chain signals, liquidations and re-pricing events are already visible in related ￰11￱ is too early to measure the full scope, however, and authorities or counterparties have not announced formal ￰12￱ To Watch Next The investigation’s findings and any forthcoming audit from Stream or its legal team are expected to shed light on how the loss ￰13￱ observers are also keeping an eye on xUSD’s price, shifts in total value locked, and any response from protocols that use Stream’s assets as ￰14￱ from Stream’s official channels and documents from Perkins Coie will likely provide the clearest picture of the next phase in the ￰15￱ now, the freeze on deposits and withdrawals remains in effect as the inquiry ￰16￱ image from Unsplash, chart from TradingView