Stream Finance, another decentralized finance has suffered and has exploited that claimed about $93 million from its treasury. The DeFi platform confirmed the breach on Tuesday through a post on its official page on X.
According to the firm, the attack occurred on Sunday and it has hired a private investigator from prestigious Perkins Coie law firm to look into the issue. Also, Stream Finance in response to the attack has suspended withdrawals and deposits on its platform to mitigate the risk.
The firm revealed that it is actively withdrawing all liquid assets and expects the process to be completed soon. Furthermore, the project team stated that it will provide more information once it becomes available.
Meanwhile, Stream Finance has a collateralized stablecoin known as Staked Stream USD (XUSD). Before the DeFi platform confirmed the attack, the stablecoin lost its USD peg.
Consequently, the issue raised concerns among community members who noticed how the token began to depeg over the weekend. The situation attracted questions after Stream Finance decided to halt withdrawal and deposit activity on the platform.
Omer Goldberg, the founder of Labs, raised the alarm on X many hours before the DeFi platform confirmed the breach. Some days earlier, Stream Finance interacted with community members on X in regards to the discrepancies between the platform’s total value locked (TVL) reported on its website and what DefiLlama, a popular DeFi data provider uploaded on its platform.
Initially, Stream Finance claims to offer recursive looping but DeFiLlama said the offering isn’t a TVL according to its standards.
Side Note
It is worth mentioning that the attack on Stream Finance surfaced shortly after Balancer, another DeFi platform, suffered a breach. On Monday, Binbits reported that the company lost about $128 million to hackers.
With the latest attack on Stream Finance, the cryptocurrency space has kick-started the new month on an unwanted note. In less than a week into November, the digital assets industry has given up around $220 million which is way high compared to what hackers stole in the previous month.
For both attacks, investigators are yet to identify the culprits as all indicators point to North Korea state-sponsored hackers, Lazarus Group.
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