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The Staked Stream USD (XUSD) stablecoin has plummeted in value after the token’s issuer, Stream Finance, disclosed millions of dollars in lost assets.
Stream Finance says it is retaining lawyers to investigate how an “external fund manager” overseeing the firm’s funds lost about $93 million in assets.
The firm also says it is “temporarily” freezing all customers’ withdrawals and deposits during the investigation.
XUSD, which is supposed to be pegged 1:1 to the US dollar, has since collapsed to around $0.177 at time of publishing, an 82.3% decrease in value.
Stream Finance, a decentralized finance (DeFi) project that launched last year, allows users to add funds on its platform to receive a yield from several investment strategies, including lending arbitrage, incentive farming and hedged market making.
Says Stream Finance on X,
“[On Monday], 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 To keep our stakeholders informed, we will provide periodic updates as additional information becomes available.
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. Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and robust corporate governance.”
