The Alameda Research liquidators have reportedly suffered at least $11.5 million in losses since taking control of the bankrupt investment fund’s trading accounts.
On January 16, A.J threadArkham Intelligence’s Twitter reported that a portfolio under the control of liquidators had suffered a number of “significant losses” due to the liquidation, some of which would be “avoidable losses”.
Over the past two weeks under the control of the liquidator, the account has suffered significant losses:
Largest single settlement: $4.85 million
Total liquidated amount: $11.5 million
Avoidable losses: $4 million+– Arkham (ArkhamIntel) January 16, 2023
In the last two weeks under the control of the liquidator, the account suffered significant losses:
Biggest single sale: $4.85 million
Total amount settled: $11.5 million
Avoidable losses: $4 million+
– Arkham (ArkhamIntel)
For example, Arkham noted that the wallet ending at 0x997 initially had a short position of 9,000 ether (ETH) ($10.8 million) against a collateral of $20 million in USDC and $4 million in Dai (DAI). , with a net worth of US$15.2 million when the liquidators took over.
However, after a series of liquidations that lasted nearly two weeks, the current account is now worth “$1.1 million ether vs $1.4 million: net balance $300,000.”
Arkham said this is the latest development in “a series of market moves that have gutted many Alameda positions left open after bankruptcy.”
Another liquidation occurred when Alameda wallets removed $7 million in USD and $4 million in DAI from decentralized cryptocurrency lending platform Aave to a separate account in a Level 2 solution Optimism in December, as liquidators began withdrawing assets from Alameda wallets.
This withdrawal of funds is believed to have placed the position at high liquidation risk, resulting in the sale of $11.4 million in USDC to a settlement bot based on optimism, while the Aave treasury took another $100,000 of USDC as liquidation tax.
Arkham explained that if the liquidators had used a function to close out the position immediately by selling the collateral rather than withdrawing the collateral from the portfolio, at least $15 million would have been preserved instead of $11 million refunded, for a total of $4 million. losses that could have been avoided.
On January 13, Cointelegraph reported that liquidators at Alameda Research lost $72,000 in digital assets while consolidating funds into a single wallet on Aave.
Liquidators attempted to close a loan position but removed collateral by mistake, putting the assets at risk of liquidation. Over a period of nine days, the loan was paid off twice, resulting in a total loss of 4.05 wrapped bitcoins (WBTC), which creditors cannot recover.
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