Stream Finance Suspends Withdrawals After $93 Million Loss from External Fund Manager

Stream Finance halts deposits and withdrawals after $93 million loss by external fund manager; investigation underway.

Fridah Kangai
November 5, 2025
6:22 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Stream Finance halts withdrawals after $93 million loss disclosure.
External fund manager’s loss prompts investigation into Stream Finance.
xUSD depegs to $0.53 amid Stream Finance financial troubles.

Stream Finance, a DeFi protocol, announced the suspension of all withdrawals and deposits. This comes after an external fund manager overseeing its assets revealed a $93 million loss. The company revealed the information on X, saying that it is making efforts to liquidate all the outstanding liquid assets. This will come to a halt in the near future.

All withdrawals and deposits will be suspended until Stream Finance is in a position to determine the extent and nature of the loss. The company also explained that the pending deposits will not be processed during this period.

To examine the incident, Stream Finance has contracted the services of Keith Miller and Joseph Cutler of Perkins Coie LLP. The company has guided many fintech firms on legal, compliance, and cybersecurity issues. They will research the conditions of the loss and provide recommendations on how to proceed.

Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.

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…
— Stream Finance (@StreamDefi) November 4, 2025

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On Monday, a security company named Peckshield issued a warning that the Staked Stream USD (xUSD) had been depegged. CoinGecko reported that the token’s price plummeted to $0.53. This has cast doubt on the financial stability of Stream Finance among the investors.

Investigation Underway as Stream Finance Faces Scrutiny

The withdrawals are suspended during a period when the DeFi industry is under increased scrutiny. Similar incidents of protocol vulnerabilities and failures have raised alarms in the industry. The depegging of xUSD and the resulting loss of $93 million have also increased concerns regarding the effectiveness of this protocol in handling user funds.

Perkins Coie’s involvement shows that Stream Finance is taking the situation seriously. The solution of the investigation may have long-term consequences on the DeFi space. As the investigation continues, the company has undertaken to update its users on a regular basis. The society is waiting to know what is going on.

How Stream Finance reacts to this crisis will play a key role in its future. The field of DeFi is volatile, and protocols should have the capability to demonstrate their sound risk management to become trusted. Stream Finance is in a precarious position, and its operations can have a significant impact on the broader DeFi ecosystem.

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