Stream Finance Pauses All Deposits and Withdrawals After Discovering a $93 Million Loss in Assets

DeFi Protocol Stream Finance has halted all withdrawals and deposits on its platform following the disclosure of a $93 million loss.

In its latest post on X, the DeFi Protocol cited a notice from an external fund manager overseeing its assets before notifying users about the service interruption.

Following the early Tuesday announcement, Stream Finance noted that it has initiated steps to withdraw all remaining liquid assets, in a process that it intends to complete in the near term. In the meantime, the DeFi Protocol said it is in the process of engaging Keith Miller and Joseph Cutler of the law firm to lead a comprehensive investigation into the incident.

Meanwhile, Stream Finance noted that all withdrawals and deposits on its platform will remain suspended until the firm can fully assess the scope and causes of the loss. The team promised to keep stakeholders informed about developments surrounding the ongoing situation. However, it further noted that it will not process any pending deposits.

Despite Stream Finance’s reassurance and claims to be investigating the issue, the unfolding event has raised concern among users, particularly those who use the platform for trading and long-term holdings. The halt in transactions would likely leave users unable to access their funds, with no timeline for concluding the investigation in sight.

Citing similar events in the past and the ideal way to recover one’s funds, Stream Finance users are encouraged to take steps that would prepare them for potential fund recovery in the future. Such steps may include taking screenshots of their balances, deposits, and transaction history. They may store the saved information securely or in multiple locations so that it can be easily provided, in case the platform requests details to recover lost assets in the future.