DeFi platform Stream Finance has faced a financial setback, prompting the company to launch an investigation led by Perkins Coie LLP.
The company, known for driving capital efficiency and yield generation through innovative decentralized finance protocols, announced on
In response to the unexpected loss, Stream retained Perkins Coie LLP, a leading international law firm recognized for its expertise in corporate governance, financial investigations and regulatory compliance.
The fintech litigation firm has assigned attorneys Keith Miller and Joseph Cutler, who have experience handling internal investigations and cryptocurrency-related cases, to lead a thorough investigation into the incident. CoinDesk has contacted Perkins Coie LLP for comment.
“Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and strong corporate governance,” Stream said in X.
Stream is currently in the process of withdrawing all liquid assets and expects to complete this process shortly.
The company temporarily suspended all withdrawals and deposits, and pending deposits were stalled until further notice. It is committed to providing regular updates as additional information becomes available and the investigation progresses.
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The massive loss in Stream Finance has raised uncertainty about how it will be resolved among holders of the protocol’s xUSD, xBTC, xETH and those who have lent money against these tokens.
Among them, xUSD is widely used as collateral in multiple select lending markets on platforms such as Euler, Morpho and Silo, which operate on various blockchain networks including Plasma, Arbitrum and Plume.
According to a pseudonymous YAM analyst, total outstanding loans and borrowings secured by Stream-related collateral are likely to exceed $280 million. YAM noted that this figure excludes indirect exposures, such as those involving deUSD and other complex lending circuits, and may not be completely accurate. deUSDeither The Decentralized US Dollar is a fully collateralized and yielding synthetic dollar powered by Elixir Network.
CoinDesk contacted Stream Finance via X for comment.
