"The biggest victim of the DeFi collapse" suffers losses of over 100 million USD, with funds still inaccessible

BlockBeats News, November 11 — Due to the collapse of the DeFi protocol Stream Finance, a major holder told BlockBeats that he has over $100 million in deposits that cannot be withdrawn, and currently, the platform has not provided any follow-up solutions.

According to this victim, he only learned about Stream Finance's insolvency crisis and the freezing of a large amount of investor funds after seeing news in early November that Stream Finance had disclosed a $93 million loss on its official Twitter. He immediately attempted to withdraw funds, only to find that the protocol's liquidity had been completely depleted.

The victim's assets are mainly distributed on the Euler protocol, with approximately $82 million USDT stored across three addresses. In addition, 233.3 BTC (about $24.5 million) are stored in Silo, bringing the total trapped funds to over $107 million. The addresses are as follows:

1. 0xa38d6e3aa9f3e4f81d4cef9b8bcdc58ab37d066a; Euler: $57 million USDT;

2. 0x0c883bacaf927076c702fd580505275be44fb63e; Euler: $3.8 million USDT;

3. 0x673b3815508be9c30287f9eeed6cd3e1e29efda3; Euler: $22 million USDT;

4. 0x5f8d594f121732d478c3a79c59bcd02823b6e7a3; Silo: 233.3 BTC;

Currently, the deposit function of the Stream Finance protocol has been disabled, and user funds are completely frozen. Due to the protocol's design mechanism, withdrawal quotas can only be released when new funds are deposited, but with the deposit function now closed, this mechanism has completely failed. Since the last official Twitter statement on November 4, there has been no further information or solutions from the team.

In several victim rights groups, some investors have tried to seize the limited liquidity through technical means, including attempts to use "bot frontrunning." It is reported that some investors have fallen victim to scams after trusting others who claimed to provide technical assistance, transferring their deposit certificates and suffering losses, leading to chaos in the community.

Previously, according to independent DeFi analyst YieldsAndMore, the Stream Finance collapse involves debt exposure across multiple DeFi protocols totaling $285 million. The largest exposures are to TelosC ($123.6 million), Elixir ($68 million), and MEV Capital ($25.4 million). The team stated that the losses are huge, the resolution is unclear, and more stablecoins and liquidity pools may be affected. Research shows that the largest single risk exposure belongs to Elixir's deUSD, which lent $68 million USDC to Stream, accounting for about 65% of deUSD's total reserves. For more details, see "DeFi's Potential $8 Billion Time Bomb, Only $100 Million Has Exploded So Far."

Since protocols such as Euler, Morpho, and Silo are decentralized, there is little room for intervention. Multiple parties are working with legal teams to prepare lawsuits, but the progress and possibility of fund recovery remain unclear. For trapped investors, the only option is to follow official channels of the relevant projects for updates, and there is still no timetable for asset unfreezing.

This incident once again exposes systemic issues in the DeFi ecosystem, such as recursive leverage, protocol contagion, and lack of risk management. Even though the Stream team once claimed that its positions enjoyed "full redemption rights per dollar," in extreme cases, such promises depend on the liquidity and health of underlying assets; once those assets default, such promises become meaningless. Creditors only learned of the full risk exposure through third-party analysis after the fact, highlighting the huge shortcomings in risk disclosure and real-time auditing in the current DeFi ecosystem.

The composability of DeFi is a double-edged sword: it enables efficient capital recycling and higher yields in bullish markets, but also allows risks to quickly penetrate multiple protocol layers, forming a complex network of risk exposure.