Stream Finance Engages Investigation into $93 Million Loss

Stream Finance experienced a loss of $93 million due to an external fund manager’s mishandling, prompting an investigation by Perkins Coie LLP, announced on November 4th.

This incident reveals vulnerabilities in DeFi operations, possibly affecting market confidence and related platform stability.

Perkins Coie LLP Leads $93 Million Loss Inquiry for Stream Finance

Stream Finance recently reported a $93 million loss in assets attributed to an external fund manager’s oversight. In response, the firm has enlisted Perkins Coie LLP for a detailed investigation to establish accountability and assess future steps.

Experienced attorneys from Perkins Coie LLP are leading the investigation. Stream Finance suspended operations, including withdrawals and deposits, underscoring their commitment to transparency and governance.

“Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and robust corporate governance.” — Stream Finance (via X)

Potential Impact on DeFi Regulation After Stream’s Massive Loss

Did you know? The Terra/LUNA collapse in 2022 highlighted synthetic asset risks like those faced by Stream Finance, magnifying the potential for widespread crypto market implications.

StraitsX USD (XUSD) is currently priced at $1.00 with a market cap of $50.13 million, remaining stable despite a 24-hour volume drop by 75.30% to $20.07 million. The circulating supply is 50.12 million, with no capped max supply. Data source: CoinMarketCap.

The Coincu research team suggests possible increased regulatory scrutiny and corrective technological measures affecting DeFi protocols. This situation may spur strategic shifts toward more stringent asset management practices.