- Stream Finance has paused all its deposit and withdrawal activities after its $93 million loss.
- The platform’s stablecoin, Staked Stream USD (XUSD), was significantly impacted by the result of the hack and fell to as low as $0.51, raising investor panic.
A few days ago, the decentralized finance platform, Stream Finance, faced a major crisis and lost about $93 million in its assets. So far, the company has temporarily paused all its deposits and withdrawals due to the shocking discovery and in a bid to manage the losses too.
How Stream Finance Faced A $93 Million Exploit
According to the news published by Stream Finance on social media, the loss was first detected by the external fund manager responsible for overseeing the platform’s funds. According to the post shared on X, the Stream Finance team explained that they were informed about the situation on Sunday and have since then hired lawyers from Perkins Coie to seriously conduct a full investigation into what happened.
But before the platform even announced the problem, users had already started to suspect that something was wrong after noticing that deposits and withdrawals were suddenly paused without any kind of explanation. Immediately, they noticed some users warned that the stablecoin was beginning to lose its peg, and panic quickly spread throughout the community.
One of the major tokens affected by the hack is Stream Finance’s stablecoin, also known as Staked Stream USD (XUSD). The stablecoin is essentially a part of Stream’s ecosystem and is designed to stay pegged to the U.S. dollar. However, due to the ongoing issues, XUSD lost most of its value, dropping to as low as $0.51, according to data from CoinGecko.
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The Way Forward to Recovering from the Crisis
The platform stated that it is actively withdrawing all its liquid assets and it expects that this process will be completed soon. Stream Finance also promised to share regular updates with the public if any new information comes up. For now, users are unable to deposit or withdraw funds, and the company has confirmed that all pending transactions will remain on hold until the investigation is finally complete.
Regarding the hack, Omer Goldberg, the founder of Labs, posted on X, saying that the situation seemed to be connected to an over $100 million exploit on Balancer, an automated market maker platform. In all, the investigation is still ongoing, and many users are anxiously waiting for clarity about whether their funds can be recovered. Stream Finance’s team is also working with legal experts and financial professionals to assess the damage and find the way forward.
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