On-chain asset manager MEV Capital has experienced a catastrophic 80% decline in its assets under management (AUM), falling from a peak of $1.5 billion in October 2025 to approximately $300 million as of February 25, 2026, according to data from DefiLlama. The dramatic contraction, described by sources as "a true industrial catastrophe," has triggered severe operational consequences including mass staff departures and the withdrawal of the CEO from public activities.
The crisis originated on October 10, 2025, when the deUSD stablecoin, issued by Elixir, lost its parity with the U.S. dollar. This depeg event triggered automatic liquidations across multiple protocols in which MEV Capital was heavily exposed, resulting in direct losses exceeding $10 million for the firm. MEV Capital, which maintains offices in Vilnius and Dubai with a predominantly French team, was heavily invested in yield strategies involving deUSD.
The financial impact has been devastating. DefiLlama data shows the firm's gross protocol revenue collapsed to $804,720 in Q1 2026, representing an 86.8% decrease from the $6.10 million reported in Q4 2025 and a staggering 92.4% drop from its Q1 2025 peak of $10.62 million. Quarterly earnings followed a similar trajectory, plummeting from $608,910 in Q4 2025 to just $99,020 in the most recent quarter.
Operationally, the firm is now in an "operational vacuum." Laurent Bourquin, MEV Capital's CEO and a former Société Générale executive, has stepped back from public view, with a source stating he is "taking a break." Of the firm's 15 employees, approximately 10 have departed.
The fallout has led to significant partner defections. Luxembourg-based Belem Capital, a digital asset investment platform for institutional investors, announced it has internalized the institutional asset management team from MEV Capital, absorbing a team of 10 specialists across asset management, risk, and technology. All investment operations are now centralized on Belem's internal platform.
Furthermore, the tokenization protocol Midas has severed its relationship with MEV Capital. In a public statement, Midas appointed RockawayX, a digital asset firm with $2 billion in AUM, as the new strategy manager for its mMEV and mevBTC products effective immediately. RockawayX will assume responsibility for ongoing risk monitoring and strategy oversight, with Midas confirming all pending redemptions have been processed.
Market attention is now focused on the liquidation process of MEV Capital's remaining strategies and the firm's ability to survive this crisis, as well as the resolution of any outstanding redemptions within the products now under new management.
