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Alameda Liquidators Fail To Consolidate Fund

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Alameda Liquidators Fail To Consolidate Fund

Alameda Research liquidators were liquidated for US$72,000 from an on-chain position on decentralized finance (DeFi) lending platform Aave while trying to consolidate funds from Alameda wallets into a single multi-sig wallet.

The extra collateral was removed by the liquidators before attempting to exit a borrow position on Aave, putting the funds at risk of liquidation.

The position was twice liquidated for a total of 4.05 aWBTC worth US$72,000 over the course of nine days, and, creditors won’t be able to recover those funds.

While attempting to remove sizable amounts of LDO, the liquidators made nine unsuccessful transactions without realising the tokens were still vested. After several unsuccessful attempts, they were able to transfer the money in smaller portions, totaling 10,000 LDO tokens.

In the past two weeks, multiple wallets connected to Alameda have transferred approximately US$1.4 million in cryptocurrency to the multi-sig wallet of the creditors.

Apparently losing digital assets valued at US$1.7 million in a hack in December, the liquidators began pooling the funds 10 hours later.

There are still more than 50 Alameda wallets with valuables locked inside of them, the largest of which, is worth more than US$14 million.

(With inputs from Shikha Singh)

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