$93 Million Shortfall Halts All Activity on Stream Finance

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 04, 2025

Key Takeaways

Stream Finance halted deposits and withdrawals after discovering a $93 million loss reported by an external fund manager;
The company has brought in legal firm Perkins Coie to investigate the missing assets and is working to recover what remains;
XUSD, Stream’s stablecoin, began to lose its peg before the announcement, which raised concerns among users about the platform's stability.

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Stream Finance, a decentralized finance (DeFi) project, has paused user transactions following the discovery of a major financial gap.

The company announced on November 4 that it had halted deposits and withdrawals following a report from an outside fund manager, who identified a $93 million shortfall in managed assets the previous day.

In response, Stream Finance has hired legal support from the firm Perkins Coie to conduct a detailed investigation. According to a public update, the team is currently working to recover any remaining liquid assets.

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As of now, users cannot move funds in or out of the platform. All pending deposits are also on hold while the team reviews the cause of the loss.

Stream Finance is known for offering yield-generating strategies that use a recursive loop. It also operates a stablecoin, Staked Stream USD (XUSD), which is backed by collateral.

On November 2, users noticed problems before the company made any announcements. XUSD began losing its peg to the US dollar, which dropped below $1.

Before the official statement, Omer Goldberg, founder of Labs, posted on X that XUSD had dropped below its intended value.

He linked the issue to a recent exploit that resulted in over $100 million in losses on the automated trading protocol Balancer. How did the security breach happen? Read the full story.