The saga continues. @k3_capital is threatening legal action on @elixir, claiming Elixir is a 'coordinated fraudulent scheme' orchestrated by Philip Forte (founder of Elixir) and facilitated by Caleb from Stream Finance'. K3 alledges Elixir misrepresented their product by lending 68m to Stream, turning from a 'basis trading' product into a 'tokenized fund-of-funds', a completely different and riskier profile. Elixir treated lenders as junior capital, claiming 'Stream holds roughly 90% of the deUSD supply (~$75m)'. This is not entirely true. Stream has borrowed stables against their deUSD exposure on many money markets, and their true exposure is much smaller. It is completely unfair that Elixir let existing deUSD holders redeem at 1:1, completely ignoring the 68m hole in their balance sheet. deUSD holders were not treated unilaterally. Instead of 'Stream' taking on the loss of deUSD being worthless, it's the lenders on multiple lending markets that suffer. By our math, which could very much be incorrect, across all wallets, Stream is holding about 11.34M of deUSD net exposure, if deUSD was still redeemable 1:1. This is so much smaller than the 68m loan, meaning Stream might possibly not end up paying this loan back. Instead of this loss being socialized among all deUSD holders, it is now the lenders that would take on the losses. In our opinion, deUSD redeems should have been completely paused until this situation with the loan was resolved. Either that, or let deUSD holders partially redeem their claim of the total backing minus the 68m hole, so users don't have to wait for legal proceedings and at least get a part of their capital back right away. Here are the wallets we checked for Stream's current loans against (s)deUSD: Stream Main Stream msig no xUSD loops Stream Connected, deUSD dumper Stream xusd looper worthless 1 Stream xusd looper worthless 2 Stream xusd looper worthless 3 Allegedly Ryan Demattia Allegedly Ryan Demmatia 2: Ryan Demmatia 3: Stream? Stream stream, empty Law's old wallet, claims is Stream owned Stream d2 finance, kinetic Lighter Withdrawals Lighter Withdrawals 2 Stream Gearbox loop empty Stream xUSD loop Some of these might not be owned by Stream, but by the 'External Managers', or other parties. We are not certain all wallets are owned by Stream at all, these wallets were found by onchain links. We are not lawyers. None of this is legal advice. We're simply stating our opinion on what would be morally right. Thanks for understanding.