Stream Finance collapse — what creditors were owed and recovered (2025)

Stream Finance was a yield platform that issued the xUSD token against deposits and routed capital to external fund managers running off-chain strategies. On 4 November 2025 it announced that one of those third-party managers had reported a loss of about US$93 million in platform assets over the preceding weekend, and suspended all deposits and withdrawals until further notice.

xUSD lost its peg immediately, falling more than 70 percent to about US$0.29 on the day and, by later accounts, trading in the US$0.07 to US$0.14 range without recovering. More than US$160 million of user deposits were trapped across the affected vaults. That deposit figure, rather than the US$93 million loss, is the closer measure of what was owed to depositors.

The failure spread through lending markets that had accepted xUSD or lent to Stream. Elixir's deUSD, which researchers said had lent roughly 65 percent of its backing to Stream, fell close to 98 percent to around US$0.015 and was wound down. Stables Labs' USDX broke below US$0.60 days later. Researchers traced roughly US$285 million of interconnected debt across the affected vaults, and about US$1 billion left DeFi yield strategies within a week.

Stream retained Perkins Coie to lead an investigation and said it was withdrawing remaining liquid assets. On 8 December 2025 Stream Trading Corp. sued in federal court in San Francisco, alleging that a trader, Ryan DeMattia, had used about US$93 million of protocol assets to cover a personal loss and offered false explanations for the missing funds, and that Caleb McMeans, who took control of the protocol in January 2025, had failed to honour the agreement he signed when he did so. Those are allegations in a civil suit and have not been adjudicated.

Six months of public silence followed. A Delaware entity, Stream Soft Holding Company, was incorporated on 20 March 2026, and in May 2026 Stream said it would consolidate, liquidate and distribute its assets through it "as expeditiously and prudently as possible", with Cooley LLP taking creditor enquiries. Reporting described the arrangement as resembling an assignment for the benefit of creditors, a state-law liquidation that moves faster than Chapter 11 and investigates prior conduct less. No insolvency proceeding has been opened in any court.

In June 2026 Stream opened an online form to collect creditor claims as a step towards what it called a potential global resolution, while stating that submitting it does not establish or confirm any claim, entitlement or right to payment. It set no deadline and published no structure. In July 2026 SiloDAO filed a single coordinated claim through its counsel covering every lender exposed to xUSD and xBTC — more than US$31.6 million of stablecoin claims plus 272.70 BTC, computed from a snapshot taken on 7 November 2025 — because Stream’s process accepts individual claimants only. xUSD was trading near US$0.08, about 92 percent below its peg. Nothing has been distributed.