DeFi

xUSD

Balancer

Stream Finance, a DeFi platform, temporarily paused all withdrawals and deposits after an external fund manager reported losing roughly $93 million in assets. The team <a href="https://x.com/StreamDefi/status/1985556360507822093" rel="noopener noreferrer nofollow">announced</a> the halt earlier today and confirmed that pending deposits will not be processed.
<blockquote>
 We are actively withdrawing all liquid assets and expect this process to be completed in the near term
</blockquote>
Stream hired outside counsel as well. Partners Keith Miller and Joseph Cutler from Perkins Coie LLP will investigate the loss and guide next actions.
The announcement hit the market immediately. xUSD (Staked Stream USD), Stream’s stablecoin, crashed from $1 to about $0.18 in 24 hours, wiping out over $100M. The drop erased 82% of its value as users rushed to exit.
Warnings appeared days earlier. Analysts and media called out hidden leverage, synthetic yields, and weak risk controls. Users also noticed unexplained pauses in withdrawals and deposits, raising early alarm.
This failure adds more pressure to DeFi. In the past few days, Balancer lost $116M and Stream lost $93M. Over $209M disappeared from DeFi in under a week, shaking confidence in “safe” yield models and leverage-driven products.

Stream Finance suspends activity amid investigation into $93M fund loss

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Other articles published on Nov 5, 2025

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