MEV Capital: anatomy of a collapse and takeover by Belem Capital

This is yet another signal that "institutional DeFi" tolerates no risk management errors. MEV Capital, a central player in the sector, is going through a major existential crisis.

The breaking point dates back to October 10th, when deUSD (the stablecoin issued by Elixir) suddenly lost its peg to the dollar. This "depeg" triggered a shockwave, causing automatic liquidations across numerous protocols.

Heavily exposed to these yield strategies, MEV Capital, which has offices in Vilnius and Dubai (with a predominantly French team), was caught in the trap.

According to our information, direct losses would amount to more than $10 million.

But the real indicator of the earthquake can be seen in assets under management (AUM): in just a few weeks, the company's onchain assets dropped from $1.5 billion to approximately $300 million (DeFiLlama figures). An 80% evaporation of managed value.

A source close to the matter doesn't mince words: "It's a true industrial catastrophe."

The Laurent Bourquin Mystery

Beyond the numbers, it's the operational silence that worries the market.

Laurent Bourquin, CEO of MEV Capital and a well-known figure in the ecosystem, seems to have abruptly stepped back.

"If you manage to reach him, let me know," says an active investor in the sector, testifying to the uncertainty surrounding the company's current governance.

Internally, the ship is taking on water. Of the fifteen employees MEV once had, about ten have already left the venture.

Regarding the absence of the French CEO (formerly of Société Générale), a source close to him tempers: "He's taking a break."

A withdrawal that comes at the worst possible time for the structure's credibility, as revenues (indexed to management and performance fees) have mechanically collapsed with the decline in assets.

Belem Capital Goes on the Offensive

Faced with this void, Belem Capital - composed of a French team - has decided to take action.

The Luxembourg fund, designed to offer regulated DeFi exposure to institutional investors, had until now relied on MEV Capital as its operational arm.

To protect its clients and ensure operational continuity, Belem announced this Wednesday the integration of management teams.

In a statement, Belem specifies that it is "strengthening its structure by internalizing MEV Capital's institutional management team, historically in charge of the fund's portfolios."

A strategic pivot that transforms the investment vehicle into an integrated operator. "Our goal from the beginning has been to support banks and institutional investors in DeFi.

Thanks to this operation, we now control both management and onchain execution internally," explains a Belem Capital executive.

This vertical integration aims to reassure a clientele (banks, asset managers, family offices) that has become extremely demanding on risk standards after successive market setbacks since 2022.

According to our information, Belem Capital could recover several "clients" from MEV Capital, such as SG Forge - a subsidiary of Société Générale - which has a vault on Morpho.

An Inevitable Consolidation

The contrast is striking with other market "curators."

Players like Steakhouse Financial or Gauntlet managed to stabilize their assets (respectively $1.5 billion and $1.3 billion) despite October's turbulence. For one sector expert, the assessment is unequivocal: "They benefited quite a bit from the loss of confidence in MEV."

Belem Capital does not intend to remain on the defensive.

Through a "collaboration" with RockawayX, the company wants to position itself on public vaults.

The stated ambition is clear: "Everything needs to be rebuilt. We're starting almost from scratch. The goal is to quickly return to October levels and once again exceed one billion dollars in assets under management."

MEV Capital's fall serves as a brutal reminder: technological maturity does not eliminate systemic risks.

In a universe of extreme correlations and automated liquidations, a manager's strength is no longer measured by its performance during uptrends, but by its ability to withstand pressure.