Alameda Research Lost Over $1 Million Due To Liquidations

Key Points:

• Alameda Research lost over $1 million in assets during its liquidation.
• The account was forcibly reduced, according to an Arkham report dated January 14.
• The news came after $72,000 in Alameda funds were liquidated on Aave on January 12 after being combined into one wallet.

According to a tip that crypto intelligence company Arkham provided with The Block, Alameda Research lost over $1 million in assets as a result of liquidation last night.

9,000 ETH worth $10.8 million were held in the original account as collateral, along with $4 million in DAI and 20 million USDC. The account now has a net balance of $15.2 million.

However, a report from Arkham dated January 14 indicates that the account was forced to be closed and that $1.2 USDC was liquidated in return for 731 ETH. The account now has a net balance of $30,000 and a short sell of $1.1 million in ETH versus $1.14 million in USDC. Arkham said in the report:

“Surprisingly, transactions out of the wallet were made before and during liquidation, indicating that whoever was in control of the wallet either was unable to understand how to close out the positions, or was simply unwilling to.”

Before that, $72,000 in Alameda funds were liquidated on Aave on January 12 after being combined into one wallet. Some Twitter users claimed that. Sam Bankman-Fried was engaged in the incident where Alameda funds were seen switching wallets.

Bankman-Fried’s transfer to Alameda is unlikely to occur, though, as he was not able to use the online platforms until December 30, 2022, following his arrest in the Bahamas on December 12, 2022.

Former BitMEX CEO Arthur Hayes poses a direct question to Sam Bankman-Fried that the focus should be shifted from Alameda Research and their hedging strategies to risk management of FTX itself and why some customers are treated differently from others. Hayes took to express his thoughts on the recent issue with FTX. He thinks that if FTX liquidates Alameda, it won’t go bankrupt.

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Harold

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