Stream Finance Halts Operations After $93M Fund Disaster - Deposits and Withdrawals Frozen
Stream Finance grinds to a sudden halt as $93 million vanishes from its Stream Fund vault.
The Aftermath: Frozen Assets, Frustrated Users
Deposits and withdrawals slammed shut overnight—leaving investors staring at frozen balances and unanswered questions. The platform's emergency brakes locked after discovering the massive fund hemorrhage.
Another 'Trust Us' Moment in Crypto Finance
Just when you thought decentralized finance had moved past these classic meltdowns—another protocol learns the hard way that nine-figure sums tend to disappear when someone forgets to check the locks. Because nothing says 'financial innovation' like suddenly realizing $93 million walked out the back door.
Stream Finance launches legal investigations
In response to the loss disclosure, the company is engaging attorneys from Perkins Coie LLP to examine the incident and investigate the missing funds thoroughly. Stream Finance says its decision to retain Perkins Coie LLP reflects its unwavering commitment to strong corporate governance and transparency.
Concerns about the company’s accounting had reportedly surfaced days before the collapse, when a discrepancy was noted between its published TVL and DeFiLlama’s data. The difference suggested potential mismanagement, or worse, hidden leverage.
Stream Finance’s community reportedly speculates the fund manager may have used customer deposits for risky investments. Meanwhile, the protocol has not shared any evidence of a hack or external malicious attacks, suggesting the problem may have been internal, stemming from poor risk controls, human error, or unauthorized trading.
The protocol offers users yield farming opportunities via access to market-making services and delta-neutral strategies. Operations focus on trading through DeFi solutions and DEX, and users may incur performance fees of up to 10%. However, DeFiLlama’s data shows that its TVL (total value locked) nosedived from $204 million in late October to roughly $98 million.
XUSD’s depegging increases chaos across the industry
PeckShield flagged the depegged XUSD first, noting that the XUSD had deviated from its peg by over 60%. The stablecoin’s depegging has reportedly caused ripples throughout the industry, especially for the Euler crypto lending protocol. There are concerns that the protocol’s oracle may not have been updated on time after the depegging, potentially leading to bad debt. The deviation currently fluctuates between 60% and 70%, as per Coingecko data.
Stream Finance is reportedly the second yield-focused DeFi protocol to encounter major issues in just 24 hours, following Balancer’s loss of over $100 million to hackers. Nansen analysts were among the first to flag the exploit that transferred wstETH, WETH, and osETH to an unknown account for several hours.
Meanwhile, the co-founder and CEO of Trading Strategy, Mikko Ohtamaa, suggested that a faulty smart-contract check was to blame. He pointed out that concurrent transactions were altering internal balance accounting.
A recent PeckShield report also revealed that 20 major DeFi platforms were exploited in September alone, leading to a collective loss of over $127 million. However, September’s loss across DeFi platforms represents a 22% decline from August’s loss of $163 million. Meanwhile, total DeFi-related losses in 2025 amount to slightly over $3 billion, with the Bunni DEX being one of the adversely affected casualties.
Bunni completely shut down after reportedly losing over $8 million to hackers, which left the company unable to cover new security audit costs. The DEX, however, announced that its users can still withdraw their assets. Token holders will get the remaining treasury funds.
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