Stream Finance Faces $93 Million Loss, Launches Legal Investigation
Stream Finance is facing a $93 million loss after an external fund manager disclosed a significant financial setback. In response, the decentralized finance platform has engaged Perkins Coie LLP to lead a legal investigation, prioritizing transparency and corporate governance. As a precaution, the company has suspended all deposits and withdrawals to ensure asset security while the inquiry is conducted. It is currently working on withdrawing all liquid assets and expects to complete this process shortly. The loss has raised concerns regarding its impact on users holding tokens like xUSD, xBTC, and xETH, particularly as xUSD serves as collateral in various lending markets across several blockchain networks. The outstanding loans secured by Stream-related collateral likely exceed $280 million, excluding other indirect exposures.
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