Bankrupt Yield Fund 'Stream Finance' Commences Liquidation Process

In a cryptic post to X, liquidators for Stream Finance – the bankrupt crypto yield platform that disclosed it lost roughly half of user deposits last November – announced they are exploring “strategic alternatives” to maximize recoveries for creditors.

What's the Scoop?

• Winding Down: After six months of complete silence, Stream Finance today announced plans to consolidate, liquidate, and distribute remaining assets to creditors through a newly created entity called "Stream Soft Holding Company."
• Liquidation Details: According to reporting by The Defiant, Delaware corporate filings show Stream Soft Holding Comapny as incorporated seven weeks ago. Further, a restructuring specialist interviewed by the news outlet suggested that liquidators will opt for an Assignment for the Benefit of Creditors (ABC) instead of filing for formal Chapter 11 bankruptcy, a process that may distribute assets more quickly and cheaply, but would avoid seemingly necessary scrutiny over pre-collapse conduct.
• Disastrous Implosion: On November 4, Stream disclosed that an "external fund manager overseeing Stream funds" had lost approximately $93M in fund assets, and that it had retained Perkins Coie LLP to conduct a comprehensive investigation into the incident. Subsequently, the law firm filed a lawsuit against Stream owner/operator Caleb "0xlaw" McMeans in December, alleging mismanagement of user funds. Stream's implosion triggered industry-wide fallout, leaving in its wake an estimated $285M in unmatched liabilities across DeFi lenders including Morpho, Euler, and Elixir.