“DeFi platform Stream Finance is engaging law firm Perkins Coie LLP to lead an investigation after an external fund manager disclosed a huge loss.”, — write: www.coindesk.com
The firm, known for boosting capital efficiency and yield generation through innovative decentralized finance protocols, announced on X that an external fund manager overseeing Stream funds disclosed a loss of approximately $93 million in the firm’s assets, triggering a suspension of deposits and withdrawals as an investigation unfolds.
In response to the unexpected loss, Stream has 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 assigned attorneys Keith Miller and Joseph Cutler, who are seasoned in handling internal investigations and cryptocurrency-related cases, to lead a thorough inquiry into the incident. CoinDesk reached out to Perkins Coie LLP for comment.
“Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and robust corporate governance,” Stream said on X.
Stream is currently in the process of withdrawing all liquid assets and expects to complete this process shortly.
The company has temporarily suspended all withdrawals and deposits, with pending deposits stalled until further notice. It has pledged to provide periodic updates as additional information becomes available and the investigation progresses.
FalloutThe massive loss at Stream Finance has raised uncertainty about how it will be settled between the protocol’s xUSD, xBTC, xETH holders and those who have lent money against these tokens.
Among these, xUSD is widely used as collateral in multiple curated lending markets across platforms such as Euler, Morpho, and Silo, operating on various blockchain networks, including Plasma, Arbitrum, and Plume.
According to a pseudonymous YAM analyst, 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 intricate lending loops, and may not be fully accurate. deUSDor decentralized US Dollar, is a fully collateralized, yield-bearing synthetic dollar powered by the Elixir Network.
CoinDesk reached out to Stream Finance via X for a comment.
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