On Monday, the decentralized finance ( DeFi) protocol Stream Finance announced that an external fund manager misplaced a jaw-dropping $93 million in Stream assets — sparking an immediate investigation and halting all withdrawals and deposits. In the chaos that followed, the DeFi project’s stablecoin XUSD lost its footing, tumbling to a painful low of $0.2473 per coin.
$93M Vanishes, XUSD Peg Dips Hard
Now, another stablecoin finds itself wobbling off its $1 perch, its peg officially broken.
The latest slip came right after the DeFi platform Stream Finance dropped the news on X about the massive loss. Stream Finance wrote:
“Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets. In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive investigation into the incident. We are actively withdrawing all liquid assets and expect this process to be completed in the near term.”
XUSD, the DeFi project’s stablecoin, witnessed a severe loss of confidence and after holding above the $1 line it plummeted to a low of $0.2473, according to coingecko.com stats. At press time on Nov. 4, 2025, at 9 a.m. Eastern, XUSD is exchanging hands for $0.3348. There’s a circulating supply of XUSD consisting of 203,109,035 and presently, that number is valued at a mere $60.67 million.
The X account known as YAM — a “syndicate of DeFi power users” — called the incident a “massive loss,” one that’s thrown serious shade on stablecoins and vaults tied to the platform. According to YAM, the total debt owed to lenders across multiple markets sits at roughly $285 million, and that number isn’t exactly calming anyone’s nerves. YAM claimed the following platforms have exposure to Stream: Euler, Silo, Gearbox, and Morpho.
“There might be more, this is all we found,” the account concluded.
Stream Finance told its community it will share updates as they come, but emphasized that all withdrawals and deposits are on ice for now.
Replies on the project’s X post have been switched off. “To keep our stakeholders informed, we will provide periodic updates as additional information becomes available,” the post notes. The DeFi project’s disclosure concludes:
“Until we are able to fully assess the scope and causes of the loss, all withdrawals and deposits will be temporarily suspended. Any pending deposits will not be processed at this time.”
FAQ ❓
- What happened to Stream Finance?
Stream Finance disclosed that an external fund manager lost $93 million in assets, triggering an investigation and freezing all withdrawals. - Why did the XUSD stablecoin crash?
The project’s $93 million loss announcement caused panic among holders, sending XUSD plunging to as low as $0.2473. - Which DeFi platforms are affected by the loss?
YAM identified Euler, Silo, Gearbox, and Morpho as having exposure to Stream Finance’s troubled assets. - Is Stream Finance still operational?
The DeFi platform remains active but has paused deposits and withdrawals while a full investigation is underway.
