Alameda’s liquidators for creditors cryptocurrency DeFi lending platform when they were liquidated while trying to get their funds back in Aave He lost $72,000.
Liquidators Handling Alameda Wallets on Behalf of Creditors Become the Subject of Wave
The liquidators first tried to close the relevant position and in the process removed the extra collateral used for the position, putting the position at risk of liquidation.
Crypto data platform Arkham, in a report it shared, said that within nine days, the position in question was a total of 4.05, a Bitcoin-backed token used in Aave. aWBTC stated that it was liquidated twice in value.
These funds are no longer recoverable to creditors.
The data is based on data used in tagging wallets on Ethereum block explorer Etherscan, tagged as related to Alameda by Larry Cermak, Vice President of Research at The Block.
Funds from these wallets were transferred to a single wallet controlled by a multi-sig currently holding $19.6 million in Ethereum and $140 million in various tokens on Ethereum.
Arkham noted that the liquidators also tried and failed to issue a large amount of LDO tokens from one of the wallets, apparently not realizing that most of the tokens were still in the vesting phase. The liquidators managed to shoot using smaller amounts after nine unsuccessful attempts.
Approximately $1.4 million has been returned to this wallet from various other wallets associated with Alameda in the past two weeks. Prior to this, approximately 11,350 ether ($15.9 million) had been sent from a wallet associated with cryptocurrency exchange Deribit.
*Not investment advice.
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