Alameda Wallet Under The Control Of The Liquidator Lost About $11.5 Million

Key Points:

• Under the control of the liquidator, 1 Alameda wallet suffered significant losses.
• Total liquidation in 2 weeks is about $11.5 million, of which $4 million is a preventable loss.
• This is the latest in a string of market activity that has weakened many short positions in Alameda after bankruptcy.

In the past two weeks, under the control of the liquidator, Alameda wallet addresses starting with “0x997” have suffered significant losses, with a total liquidation of $11.5 million, liquidation the most considerable single is $4.85 million, and the preventable loss is more than $4 million.

When liquidators took over it two weeks ago, wallet addresses starting with “0x997” held a short position of 9,000 ETH ($10.8 million) and collateral of 20 million USDC and 4 million DAI, net balance of $15.2 million. Today, the account’s current value is $1.1 million as short ETH with collateral of $1.4 million in USDC: a net balance of $300,000.

Arkham said that this is the latest in a string of market activity that has weakened many short positions in Alameda after bankruptcy.

On December 29, about 30 hours after liquidators started moving assets out of the Alameda wallet, the Alameda wallet transferred $7 million USDC and $4 million DAI from the decentralized crypto lending platform intermediate AAVE to a separate optimistic L2 account occurs.

This withdrawal puts the position at high risk of liquidation, resulting in 11.4 million USDC being sold to the liquidation bot on Optimism and an additional 100,000 USDC being collected as liquidation tax by the AAVE vault.

Arkham explained that if the liquidator used a function to instantly close the position by selling the collateral instead of withdrawing it from the wallet, at least $15 million could be kept instead of $11 million being recovered. Therefore, a preventable loss is equivalent to $4 million.

Before that, on January 13, liquidator Alameda lost $72,000 on Aave while trying to consolidate funds. Coincu News updated on January 15 that Alameda wallet has lost over $1 million in assets due to liquidation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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