Defi Platform Stream Finance is facing a financial setback, prompting the firm to launch an investigation led by Perkins Coie LLP.
The firm, known for boosting capital efficiency and yield generation through innovative decentralized finance protocols, revealed in x That an external fund manager overseeing stream funds revealed the loss of approximately $93 million in company assets, prompting a suspension of deposits and withdrawal as an investigation.
In response to the unexpected loss, Stream engaged Perkins Coie LLP, a leading international law firm known for its expertise in corporate governance, financial investigations, and regulatory enforcement.
The fintech litigation firm appointed attorneys Keith Miller and Joseph Cutler, experienced in handling internal investigations and cases related to cryptocurrency, to lead a thorough inquiry into the incident. Coindesk has reached out to Perkins Coie LLP for comment.
“Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and sound corporate governance,” Stream told X.
Stream is currently in the process of liquidating all liquid assets and expects to complete this process shortly.
The company has temporarily suspended all withdrawals and deposits, with pending deposits frozen until further notice. It promised to provide periodic updates as more information becomes available and the investigation evolves.
Fallout
The massive loss in Stream Finance has raised uncertainty about how it will be settled between the protocol’s XUSD, XBTC, Xeth Holder and the moneylenders against these tokens.
Among them, XUSD is widely used as collateral in many curated lending markets across platforms such as Euler, Morpho, and Silo, which operate on various blockchain networks, including plasma, arbitrum, and plume.
According to a Pseudonymous analyst Yamthe total outstanding loan and borrowing secured by the stream related to the stream is likely to exceed $ 280 million. Yam noted that this figure does not include indirect exposures, such as those involving DEUSD and other complex lending loops, and may not be entirely accurate. Deusdo The decentralized US dollar, is a fully collateralized, yield-bearing synthetic dollar powered by the Elixir network.
Coindesk reached out to stream finance through X for a comment.
