XRP Users Warned to Withdraw After $93 Million DeFi Loss

Stream Finance, a decentralized finance (DeFi) protocol, has suspended all deposits and withdrawals after losing $93 million in an exploit involving one of its external asset managers. The company says it is assessing the scope of the incident and has hired legal experts from Perkins Coie to investigate.

However, pending deposits will not be processed until further notice.

The problem starts when Stream’s native stablecoinStaked Stream USD (xUSD), loses its peg to the US dollar. According to PeckShield, xUSD fell as low as $0.30 on Tuesday before partially recovering to the $0.37 range.

What’s up with XRP?

This event quickly attracted attention in the XRP community through Stream’s connection with Midas, a platform that issues the mXRP liquid return token on the XRP Ledger. Midas previously held positions in xUSD through its mHYPER fund, which operates under structures regulated by MiCA in Germany.

While Midas says it is operational and unaffected, traders have expressed concerns about indirect exposure through performance strategies linked to Stream’s assets.

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Although the platform has repeated that the withdrawals work normally, many XRP community Members described an atmosphere of “better safe than sorry” as users tested exit queues and liquidity buffers.

Some advise users to withdraw from mHYPER as a precaution, citing possible clawback risks if legal action redistributes losses. Notable XRPL contributor Vet_X0 clarified that Midas exposure was limited to xUSD positions held days before and that the normal redemption process continues.

At press time, the official mXRP dashboard shows a total closed value of around $25.55 million, with an announced annual return of 10%.