Bitcoin 
Ethereum 
Tether 
BNB 
Solana 
XRP 
USDC 
Lido Staked Ether 
Cardano 
Avalanche 
Key Points:
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Stream Finance faces $93 million loss linked to an external fund manager.
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Perkins Coie LLP is leading the crypto investigation to assess the damage.
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Deposits and withdrawals are suspended as blockchain security measures tighten.
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The loss raises risks for DeFi users holding xUSD collateral across lending markets.
Stream Finance faces $93 million loss after a major disclosure from an external fund manager.
The DeFi platform confirmed the issue on X, stating that it has engaged Perkins Coie LLP to conduct an independent crypto investigation.
The company, which promotes capital efficiency and yield generation, suspended all deposits and withdrawals. This move aims to secure its remaining assets while the investigation unfolds. The loss highlights the ongoing challenges of blockchain security and risk control in decentralized finance.
From my perspective, the quick reaction from Stream Finance shows the team’s focus on transparency. Still, the sudden loss underscores how DeFi systems remain vulnerable to external fund mismanagement.
Perkins Coie LLP steps in to lead the crypto investigation
The legal firm Perkins Coie LLP, known for its experience in financial investigations and regulatory compliance, will lead the inquiry. Attorneys Keith Miller and Joseph Cutler, both recognized for their work in crypto cases, will oversee the process.
Stream Finance stated, “Our decision to retain Perkins Coie LLP reflects our commitment to transparency and strong corporate governance.” The firm also noted that it will provide regular updates as the case develops.
The engagement of Perkins Coie LLP is seen as a move to restore confidence in Stream Finance and the broader DeFi community. It signals that accountability remains central even in decentralized ecosystems.
The investigation by Perkins Coie LLP might shape how DeFi platforms respond to financial losses in the future. Legal oversight can bring credibility to an industry still learning to manage institutional-scale risk.
Impact on xUSD collateral and other ecosystems
The $93 million loss has created concern across lending markets that use Stream-related assets as collateral. Tokens like xUSD, xBTC, and xETH back loans on platforms such as Euler, Morpho, and Silo. These operate on networks including Plasma, Arbitrum, and Plume.
Analyst YAM estimated that the total outstanding loans and borrowings involving Stream-linked collateral may exceed $280 million. That figure excludes indirect exposures tied to synthetic assets like deUSD, a collateralized dollar token built on the Elixir Network.
The uncertainty now centers on how these exposures will be handled if the lost assets are not recovered. Blockchain security experts warn that collateral-linked tokens can create hidden systemic risks when mismanagement occurs.
Stream Finance faces $93 million loss impact on xUSD markets. If Stream Finance fails to restore its balance sheet, ripple effects could reach other DeFi projects that depend on xUSD collateral. This could lead to liquidity issues in several lending pools across major blockchains.
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Stream Finance strengthens blockchain security and transparency
Stream Finance has started withdrawing its remaining liquid assets to safeguard user funds. The company said it plans to finish this process soon. It has also pledged to maintain open communication with its community and partners.
The case highlights the growing demand for better oversight in DeFi. Blockchain security protocols must evolve to prevent similar large-scale losses.
Crypto experts suggest that decentralized platforms need hybrid governance models combining smart contract automation with human auditing and compliance checks. Such steps could help detect early warning signs before major losses occur.
Strengthening blockchain security after major DeFi losses. While the loss is severe, it presents a learning moment for the industry. Transparency, audits, and stronger management frameworks can help rebuild trust in decentralized finance platforms.
