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Friday, February 3, 2023

Alameda Research Loses $72K

The loss happened after Alameda Research’s liquidators tried to settle a borrow position on Ave but withdrew the additional collateral that had been utilized for the transaction instead. The Alameda Research liquidators are still having trouble getting money back for the debtors. The liquidators lost $72,000 in digital assets on the decentralized finance (DeFi) lending site Aave while attempting to combine money into a single multi-signature wallet, according to a tweet from the crypto analytics firm Arkham.

Alameda Research Made A Huge Loss

The assets were at risk of being liquidated because the liquidators attempted to settle a borrow position on Ave but instead withdrew additional collateral utilized for the deal. According to Arkham, the debt was twice liquidated over nine days for a total of 4.05 Wrapped Bitcoin (WBTC), which creditors will no longer be able to recover. “Over the past two weeks, about $1.4M of tokens have been progressively restored to this central multisig from dispersed Alameda wallets,” claims Arkham. Nevertheless, there are still substantial amounts of money sitting in over 50 Alameda wallets, the biggest of which is valued at over $14 million.

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The operators’ on-chain errors continue, according to Arkham. For instance, the liquidators failed to withdraw $1.75 million in LDO from a vesting beneficiary wallet, and they also failed to withdraw “$238K or 250K tokens.”

The liquidators were forced to withdraw 10,000 LDO at a time to transfer to the central wallet since the LDO tokens were still vesting, which led to nine unsuccessful transactions.

According to Arkham’s investigation, there are still DeFi holdings held in other Alameda wallets, which shows that the liquidators may be finding it difficult to control the situation. 

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