DeFi protocol Stream Finance announced it has temporarily suspended deposits and withdrawals after an outside investment manager disclosed losses of around $93 million.
The Stream team has hired Keith Miller and Joseph Cutler from Perkins Coie to investigate and says it is withdrawing cash assets and will provide an update soon. Until the scope and cause of the loss is clarified, all deposits and withdrawals are suspended, and pending deposits are not being processed at this time.
The news weighed on sentiment around the streaming ecosystem. The staked stablecoin XUSD broke away from the $1 peg and fell to around 0.43 within 24 hours, under selling pressure on the arbitrageur.
As of press time, there is no sign of a direct breach of the contracts, but concerns about collateral and leverage have been raised; the numbers published on social media have not yet been independently verified.
Stream, which has grown since 2024 with efficient strategies between DeFi and traditional markets, is now considering its reliance on external managers as a focus of scrutiny.
