Ethereum Yield Protocol Stream Explodes: $93 Million Disappears, Co-founders Furious and Sue Two Former Employees for Embezzlement

【Chain Wen】Stream Finance, a yield protocol on Ethereum, recently ran into big trouble. In early November, it was reported that their “external fund manager” lost $93 million in cryptocurrency assets, which accounts for 17% of the custodial assets!

The situation escalated further, and on Monday, the co-founders of Stream directly sued the two individuals. The first defendant is Ryan DeMattia from Georgia, accused of defaulting on personal loans and misappropriating the funds to fill his own gaps. The other is Caleb McMeans from Florida, who took over the entire protocol and brand in January this year, signed a bunch of agreements, and now refuses to acknowledge them. The co-founders are asking the court to enforce the contract because McMeans is passing the blame.

This protocol was quite short-lived, operating for only 9 months and shutting down in November 2024 due to slow growth and various “operational difficulties.” When McMeans took over initially, the agreement was clear—he was fully responsible, Stream only provided support services, and McMeans had to disclose how the funds were spent and bear full responsibility.

But the problem is, after signing a bunch of off-chain agreements, it became increasingly difficult to track Stream’s trading strategies in real-time. In September, the co-founders demanded increased transparency, but McMeans kept delaying. Eventually, under pressure, he admitted that his “subordinate” DeMattia had invested over $90 million off-chain and had helped DeMattia evade the co-founders’ inquiries.

In the end, McMeans couldn’t hold out any longer and admitted that he had no formal employment relationship with DeMattia, agreeing to withdraw the tokens entrusted to this “employee.” But what about the money? It’s gone.