Stream Finance Freezes Withdrawals After $93M Loss Linked to Asset Manager
Decentralized finance platform Stream Finance has suspended withdrawals following a $93 million loss tied to an external asset manager. The incident, disclosed yesterday, has sent shockwaves through the DeFi ecosystem, particularly affecting the platform's stablecoin XUSD, which lost 70% of its peg.
Stream has engaged Perkins Coie LLP attorneys Keith Miller and Joseph Cutler to lead an independent investigation. The company is attempting to recover liquidity from counterparties but has not disclosed the asset manager's identity or specifics of the lost assets.
The fallout extends beyond Stream, threatening interconnected protocols that rely on shared liquidity pools. Market analysts directly attribute XUSD's collapse to the asset management losses, highlighting the fragility of algorithmic stablecoins in crisis scenarios.
