Decentralized platform Stream Finance stopped deposits and withdrawals after an external fund manager reported a $93 million loss. The company has engaged law firm Perkins Coie to investigate the incident.

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

In a statement to X (formerly Twitter), the team noted that all liquid assets are being withdrawn from external accounts and the process is nearing completion. The developers promised to post updates as new information becomes available.

Withdrawal operations and processing of new deposits have been suspended while the investigation is ongoing. This caused a sharp drop in the Staked Stream USD (XUSD) stablecoin, which lost its peg to the dollar and fell to $0.26, according to CoinGecko.

Stream Finance positions itself as a DeFi platform with recursive income strategies and its own secured stablecoin. Problems started to appear even before the official announcement. Users noted withdrawal delays and lack of comments from the team.

According to Chaos Labs co-founder Omer Goldberg, the XUSD drawdown could be linked to the Balancer protocol exploit, from which more than $128 million was recently withdrawn. This coincidence has sparked speculation about the interconnectedness of the losses.

1/ TL;DR

Hours after a multichain @Balancer exploit triggered widespread uncertainty across DeFi, @berachain executed an emergency hard fork, and @SonicLabs froze the attacker’s wallet.

Shortly after, Stream Finance’s xUSD began to depeg materially below its target range. pic.twitter.com/FG0T9SgGKj

– Omer Goldberg (@omeragoldberg) November 3, 2025

The project has previously faced questions about transparency. For example, on October 31, 2025, Stream Finance had to explain discrepancies between TVL’s own figures and DefiLlama data. The team stated that the service did not account for recursive strategies in the total blocked value.

Experts warn that the incident demonstrates the vulnerability of complex DeFi mechanisms, where convoluted yield schemes can hide increased risks. Minal Turkal, head of DeFi-ecosystem development at CoinDCX, noted that investors should understand exactly how such platforms generate profits and which assets are actually protected.

Recall, we wrote that the Bunni exchange stopped working after a hacker attack.