RIADeFi
Refusal file · other

Why Ketju rejected K3 Capital

Memo v1Published by Ketju Research

A registry memo, published verbatim and versioned. Superseded versions are recorded, never edited away. A rejection is a judgment for Ketju's client base and thesis, not a universal safety claim. Not investment, legal, tax, or compliance advice.

The memo

REJECTED ON TOTAL ENTITY OPACITY. K3 Capital curates vaults on Euler v2 and Morpho and runs a proprietary Liquity v2 Stability Pool wrapper, sBOLD, holding roughly $393M across nine chains. No legal entity name, incorporation jurisdiction, or team or founder identity appears anywhere in K3's own materials, and no independent journalism or third-party coverage of K3 as a company was found in any source this review could access — a curator holding hundreds of millions of dollars with zero disclosed operator identity is itself a disqualifying fact for institutional coverage. K3's own marketing site actively geo-blocks US visitors, redirecting to a notice that "no services are being offered to US residents." Tracked TVL fell roughly 53%, from about $406M in November 2025 to about $190M in May 2026, before recovering to its current level, with no cause identifiable from DefiLlama's hacks database, rekt.news, or Euler's own governance forum — an unexplained, material swing this review could not resolve. Separately, a meaningful share of K3's Monad TVL traces to vaults Euler DAO itself sunset and handed to K3 as a "qualified curator" in April 2026, with no documented vetting rationale published in that governance decision.

What would reopen the file

  • A named legal entity, incorporation jurisdiction, and team identity are publicly disclosed
  • The cause of the November 2025 to May 2026 TVL decline is identified and confirmed
  • A documented, independent vetting rationale for K3's qualified-curator status is published, whether by Euler DAO retroactively or another governance body
  • On-chain KYC or allow-list enforcement, or its confirmed absence, is verified directly against the vault contracts rather than inferred from the marketing site

Facts on file

Verdict
Rejected
Exposure
other
Chains examined
Monad, Ethereum, OP Mainnet, Plasma, Arbitrum, BSC, Unichain, BOB, Avalanche
Memo version
v1
Reviewed
Next review

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