Elixir has announced that they plan to allow deUSD holders to redeem their tokens for USDC through a process that will also eliminate the risk of Stream Finance cashing out their deUSD without repaying their loan. According to Elixir, "Stream comprised of 99%+ of the lending positions (and has decided to not repay or close positions)".
Elixir shuts down deUSD after Stream Finance halt
After the defi yield platform Stream Finance announced a $93 million loss, Elixir announced it would be discontinuing its deUSD synthetic stablecoin. Stream Finance owes $68 million to Elixir, and holds around $75 million deUSD.
Moonwell accrues almost $3.7 million of bad debt after oracle malfunction
The Moonwell lending protocol, built on the Base Ethereum L2, wound up with $3.7 million in bad debt after an attacker took advantage of an oracle malfunction that caused the price of wrsETH to be massively inflated. The Chainlink oracle used by the project erroneously reported that a single wrsETH token (Kelp DAO's wrapped restaked ETH) was priced at around 1.65 million ETH (~$5.8 billion). Within 30 seconds of the oracle reporting bad data, an attacker took advantage of the error to borrow huge amounts of tokens, which they then swapped to other tokens to cash out.
Ultimately the attacker profited around 295 ETH (~$1 million), but the protocol was saddled with significantly more bad debt that the team will now have to grapple with.
- wrsETH Oracle Malfunction 11/4/25, Moonwell forum
- Tweet by CertiK Alert [archive]
Stream Finance halts activity after $93 million loss
The Stream Finance defi yield project announced that "an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets." Stream announced that they were in the process of withdrawing remaining liquid assets, and had halted all deposits or withdrawals. They also announced they had retained a law firm to investigate the "incident".
The project didn't disclose who the fund manager was, or the circumstances in which the "loss" occurred.
The Staked Stream USD token depegged on November 3, and crashed further following the announcement.
Balancer exploited for at least $110 million
The defi protocol Balancer suffered a major exploit that drained over $110 million across several blockchains, including Ethereum, Polygon, Base, and Sonic. Attackers exploited faulty access control in the
manageUserBalance function of Balancer's v2 smart contract, enabling unauthorized internal withdrawals. The stolen tokens included 6,850 osETH, 6,590 wETH, and 4,260 wstETH, later consolidated into new wallets likely for laundering.The exploit also impacted forked protocols like Beets Finance, which lost around $3 million. Balancer's BAL token dropped over 10% following the theft.
This was Balancer's third major security incident since 2020, despite prior audits by OpenZeppelin and Trail of Bits.
Garden hacked for $11 million
The Garden bitcoin bridge suffered a roughly $11 million loss after one of its solvers was compromised. These solvers essentially act as market makers for the protocol. Some blockchain sleuths have questioned whether the affected solver, which Garden described as a separate entity, may actually be operated by the same team as Garden.
There wasn't much sympathy to be had for Garden after this exploit. The protocol had recently announced hitting a milestone of bridging more than $2 billion in assets, but the celebration was criticized after zachxbt pointed out that a substantial portion of the bridged funds were proceeds of crimes being laundered to evade detection and recovery.
Cryptomus fined $127 million for compliance failures
The Canadian cryptocurrency exchange Cryptomus has been fined CA$177 million (US$127 million) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for failing to report more than 1,000 suspicious transactions linked to darknet markets, distribution of child sex abuse material, fraud, ransomware, and sanctions evasion. It additionally failed to report more than 7,500 transactions originating from Iran, and more than 1,500 high-value transactions.
Cryptomus was temporarily banned from trading in British Columbia in May. The CA$177 million fine smashes Canada's previous record for the largest penalty they've ever imposed. That honor previously went to KuCoin, another crypto exchange fined CA$20 million (US$14.3 million) in September.
Fortress Trust is insolvent
Nevada's Financial Institutions Division has issued a cease and desist order against Fortress Trust, stating that the firm is "on the verge of insolvency". The company admits it "failed to safeguard assets under its custody and is unable to meet all customer withdrawals". The company has only around $1.3 million in actual assets in custody, while it owes customers around $12.3 million.
In 2023, Fortress experienced a $15 million theft. Though the company originally announced it would be acquired by Ripple, which had agreed to cover the shortfall, the deal eventually fell through. It's not clear how — or if — the funds were ever restored.
Fortress's insolvency has strong parallels to that of Prime Trust, another trust company that shares a founder in Scott Purcell. NFID issued a cease and desist to Prime Trust in June 2023 after finding the company was insolvent; in bankruptcy proceedings, that company later blamed much of the insolvency on losing access to a hardware wallet that held customer assets.
- Order to cease and desist from violations of NRS 669, State of Nevada Department of Business and Industry Financial Institutions Division.
Paxos accidentally mints more than twice the global GDP in PayPal stablecoins
Paxos, the issuer of PayPal's PYUSD stablecoin, accidentally minted 300 trillion of the supposedly dollar-pegged token. For context, this is approximately 2.5x the global GDP, and around 125x the total number of US dollars actually in circulation.
Paxos later announced that the mint was an "internal technical error", and that they had burned the excess tokens.
While PayPal promises its customers that "Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents – meaning that customer funds are available for 1:1 redemption with Paxos," there clearly isn't much in the way of safeguards to ensure that is always the case. As with most stablecoin issuers, Paxos merely issues self-reported and unreviewed portfolio reports, and monthly third-party attestations (not audits) of reserves.
Hyperliquid user loses $21 million to private key leak
An attacker apparently obtained access to a victim's private key, enabling them to drain $21 million in various crypto assets. The attacker quickly bridged the stolen funds to ETH, then bounced through various addresses in hopes of disguising their origin and making the funds more challenging to recover.
Some originally feared that the theft was enabled by an exploit on Hyperliquid itself, shortly after another Hyperliquid-based project was compromised, but the theft appears to have been a key leak rather than an exploit on the protocol.
Abracadabra loses more "Magic Internet Money" to third hack in two years
In their third major hack in two years, the Abracadabra defi lending project lost $1.8 million of their Magic Internet Money stablecoin. An attacker took advantage of a bug in the project smart contracts to borrow more than their provided collateral would normally allow. The attack was funded via Tornado Cash, and the exploiter then swapped the stolen tokens for ETH and laundered them back through Tornado.
The project disclosed the theft, describing the exploit as affecting "some deprecated contracts". They downplayed the theft, saying they'd bought back the stolen assets using treasury funds.
Abracadabra previously suffered a $13 million theft in March 2025, and a $6.5 million theft in January 2024.