Creditor Information Collection Launched Toward a Global Solution
DeFi yield protocol Stream Finance has announced the initiation of creditor claim information collection via an online form, targeting retail users directly holding xUSD, xBTC, and xETH, as well as institutional lenders who accepted these tokens as collateral in lending markets. The protocol describes this step as a move toward a "potential global solution" aimed at systematically mapping out liabilities and claims from various parties. However, Stream Finance explicitly notes that submitting the form does not constitute acknowledgment of any claim or payment right, and final resolution details remain subject to further legal and financial assessment.
This marks the first structured engagement with creditors following the protocol's major asset misappropriation scandal. For retail holders of xUSD, xBTC, and xETH, filing information is a prerequisite for participating in future compensation or restructuring processes. Institutional lenders, in turn, must provide detailed records of their collateral positions involving these tokens. The collection phase is expected to last several weeks, and subsequent developments will determine whether the protocol can achieve a consensual debt settlement.
Founders Sue Partner Over $93 Million Asset Theft
According to previous coverage by DL News, Stream Finance's founding team has filed a lawsuit in a U.S. federal court against a partner, accusing the partner of misappropriating approximately $93 million in protocol assets to cover personal leveraged trading losses. Even more egregiously, the partner allegedly fabricated a story about a car accident destroying his laptop to delay data disclosure and internal audits, thereby concealing the theft for an extended period.
The incident exposes deep-rooted risks in DeFi protocols regarding fund custody, internal compliance, and transparency. Stream Finance, which focuses on synthetic stablecoins and yield aggregation, had its xUSD, xBTC, and xETH token designs reliant on the credit backing of external partners. The misappropriation has shattered market confidence. The court has accepted the case, but asset recovery is highly uncertain, as some funds may have already been transferred or dissipated. The current creditor information collection is a proactive debt management measure taken alongside legal proceedings, aiming to reach a global settlement to avoid total liquidation and protracted litigation.
For the wider crypto industry, the Stream Finance case serves as a stark reminder: even within a decentralized framework, trust isolation between core teams and partners, transparent fund flow audits, and emergency response mechanisms are critical factors investors must consider. Whether fragmented claims can converge into a unified restructuring plan will test the synergy between legal systems and blockchain governance.