Decentralized finance (DeFi) platform Stream Finance has temporarily frozen all withdrawals and deposits after one of its external fund managers reported a loss of approximately $93 million, the company confirmed late Monday.
In a post on X (formerly Twitter), Stream Finance said the external manager disclosed the loss earlier this week and that the protocol is now working to recover and secure its remaining liquid assets. The firm added that it expects the withdrawal process of those funds to be completed soon.
“Until we are able to fully assess the scope and causes of the loss, all withdrawals and deposits will be temporarily suspended,” Stream said, emphasizing that it will issue regular updates as the situation develops.
Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.
— Stream Finance (@StreamDefi) November 4, 2025
In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive…
All pending deposits will remain unprocessed during the suspension period, the company noted.
Legal and Security Review Underway
To investigate the incident, Stream Finance has brought on Keith Miller and Joseph Cutler of Perkins Coie LLP, a law firm known for its work with fintech and blockchain companies. The attorneys will lead an independent review to determine what led to the loss and recommend next steps for affected users.
Perkins Coie has previously advised numerous technology and digital asset firms on legal, compliance, and cybersecurity issues, suggesting that Stream is treating the event with significant seriousness.
#PeckShieldAlert Staked Stream USD $XUSD has depegged, down ~23%. @StreamDefi pic.twitter.com/dg9tXjOJfH
— PeckShieldAlert (@PeckShieldAlert) November 4, 2025
Earlier on Monday, blockchain security firm PeckShield flagged that Stream’s stablecoin, Staked Stream USD (xUSD), had depegged — meaning its value diverged from its intended $1 target. As of 12:50 a.m. ET Tuesday, xUSD had dropped to $0.53, according to data from CoinGecko.
Growing Scrutiny on DeFi Asset Management
The Stream Finance incident highlights the ongoing challenges in the DeFi sector, where reliance on third-party fund managers and smart contracts can expose users to unexpected losses. While decentralized platforms promise transparency and autonomy, this latest event underscores the importance of oversight and security audits in protecting investor funds.
