Stream Finance seeks accountability for '$93 million loss'…files lawsuit against external fund manager
Summary
- Stream Finance said it filed a lawsuit in U.S. federal court after a $93 million loss occurred in assets managed by an external fund manager.
- It said the defendants are accused of unauthorized misappropriation of assets and failure to fulfill the contract.
- It said this incident is expected to serve as an occasion for renewed attention to the risks of DeFi asset management models.
DeFi platform Stream Finance has filed a lawsuit in U.S. federal court against the responsible parties over an incident in which managed assets entrusted to an external fund manager suffered losses of $93 million.
On the 11th (local time), according to crypto-focused media DL News, the defendants are accused of unlawfully misappropriating Stream Finance assets to cover personal loan losses. It was also alleged that they failed to properly perform the contract they entered into when they assumed Stream Finance's operational authority last January.
Stream Finance has asked the court to compel performance of the contract, and it is reported to have lost about 17% of its total managed assets in this incident.
This lawsuit is expected to serve as an opportunity for renewed attention to the risks of asset management models that use external managers in the DeFi space.
JH Kim
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