DeFi platform Stream Finance is engaging law firm Perkins Coie LLP to lead investigation after an external fund manager disclosed a huge loss.
Updated Nov 4, 2025, 11:59 a.m. Published Nov 4, 2025, 6:25 a.m.
DeFi platform Stream Finance has faced a financial setback, prompting the firm to launch an Investigation led by Perkins Coie LLP.
The firm, known for boosting capital efficiency and yield generation through innovative decentralized finance protocols, announced on X that an external fund manager overseeing Stream funds disclosed a loss of approximately $93 million in the firm’s assets, triggering a suspension of deposits and withdrawals as an investigation unfolds.
In response to the unexpected loss, Stream has engaged Perkins Coie LLP, a leading international law firm renowned for its expertise in corporate governance, financial investigations, and regulatory enforcement.
The fintech litigation firm has assigned attorneys Keith Miller and Joseph Cutler, who are seasoned in handling internal investigations and cryptocurrency-related cases, to lead a thorough inquiry into the incident. CoinDesk reached out to Perkins Coie LLP for comment.
“Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and robust corporate governance,” Stream said on X.
Stream is currently in the process of withdrawing all liquid assets and expects to complete this process shortly.
The company has temporarily suspended all withdrawals and deposits, with pending deposits stalled until further notice. It has pledged to provide periodic updates as additional information becomes available and the investigation progresses.
Fallout
The massive loss at Stream Finance has raised uncertainty about how it will be settled in between the protocol’s xUSD, xBTC, xETH holders and those who have lend money against these tokens.
Users deposit collateral—such as dollars, bitcoin, and ether—and mint corresponding tokens like xUSD, xBTC, and xETH. These tokens can then be traded, staked, or used as collateral on other DeFi platforms. While using these tokens as collateral elsewhere can boost yields, it also carries the risk that if the value of the xAsset collateral falls, the protocols dependent on that collateral for their operations or financial stability could face significant losses.
Among these, xUSD is widely used as collateral in multiple curated lending markets across platforms such as Euler, Morpho, and Silo, operating on various blockchain networks, including Plasma, Arbitrum, and Plume.
According to a pseudonymous analyst YAM, the total outstanding loans and borrowings secured by Stream-related collateral likely exceed $280 million. YAM noted that this figure excludes indirect exposures, such as those involving deUSD and other intricate lending loops, and may not be fully accurate. deUSD, or decentralized US Dollar, is a fully collateralized, yield-bearing synthetic dollar powered by the Elixir Network.
CoinDesk reached out to Stream Finance via X for a comment.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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