Stream Finance founder sues business partner, alleges embezzlement of $93 million to cover personal losses

PANews December 12 News, according to DL News reports, in early November, the Ethereum-based yield protocol Stream Finance reported that an “external fund manager” lost $93 million in cryptocurrency, accounting for about 17% of the entrusted assets. On Monday, Stream co-founder filed a lawsuit under the name Stream Trading Corp., accusing Georgia resident Ryan DeMattia of misappropriating funds after a personal loan default, to cover his personal losses. The lawsuit also accuses Florida resident Caleb McMeans of failing to fulfill the agreement and branding rights signed during the takeover in January of this year. The court is now being asked to enforce the agreement, as McMeans is suspected of shirking responsibility.

The lawsuit details the brief and tumultuous history of the Stream protocol, which operated for only nine months before shutting down in November 2024 due to slowing growth and “operational challenges.” After McMeans proposed an acquisition, he was to take full control per the agreement, with Stream serving as the service provider, and McMeans required to allocate fees, assume responsibility, and disclose fund flows. However, after reaching multiple downstream agreements, it became increasingly difficult to monitor Stream’s trading strategies in real time. In September, the co-founders demanded increased transparency, but McMeans kept delaying. He later admitted that he allowed “employees” DeMattia to invest over $90 million off-chain and helped DeMattia evade questions from the co-founders. McMeans ultimately relented, admitting he had no formal relationship with DeMattia and agreeing to withdraw the cryptocurrency he entrusted to this “employee.”