Stream Finance accuses partner of misappropriating $93 million in protocol assets to cover liquidation losses

BlockBeats News, December 12 — The founding team of Stream Finance has filed a lawsuit in a U.S. federal court against its partner, accusing them of misappropriating $93 million in protocol assets to cover personal liquidation losses, and falsely claiming that a "car accident destroyed their laptop" to delay disclosure. The lawsuit states that Caleb McMeans, who took over protocol operations, entrusted over $90 million in assets to Ryan DeMattia, who had no formal relationship with the protocol, for offline management. During the ETH crash in October, DeMattia's personal loan margin was insufficient and was forcibly liquidated, after which he used Stream assets to cover the losses, ultimately resulting in the near-total depletion of protocol assets.

The Stream team accuses McMeans of dereliction of duty, refusing to take responsibility, and previously transferring $2.1 million in protocol assets to his personal wallet. They are now requesting the court to rule that he is in breach of contract and to enforce protocol obligations. (DL News)