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Stream Finance Reports $93 Million Asset Loss in Managed Fund

Stream Finance Reports $93 Million Asset Loss in Managed Fund

Stream Finance’s $93 million loss has led to halting transactions and escalating concerns over DeFi platform stability and asset security.

Summary

Stream Finance has suspended all deposits and withdrawals after reporting a $93 million loss, intensifying concerns within the DeFi sector. The platform’s stablecoin, Staked Stream USD (XUSD), depegged sharply to $0.50 from its intended $1 value. The company is actively investigating the incident, working with Perkins Coie LLP to determine its cause and scope, and pursuing recovery of affected assets. The suspension aims to protect remaining user funds and prevent further instability across the protocol.

Terms & Concepts
  • Managed Fund: An investment portfolio administered by a professional or external manager on behalf of clients.
  • Liquid Assets: Assets that can be quickly converted to cash without significant loss of value.
  • Perkins Coie LLP: A U.S.-based law firm providing legal services, including corporate investigations.