Market

Alameda liquidators suffer losses on Aave DeFi platform

Alameda Research

Alameda Research, a decentralized finance (DeFi) lending platform, recently experienced a significant loss of funds due to liquidation.

According to crypto intelligence firm Arkham, the liquidators for Alameda Research were liquidated for a total of $72,000 from an on-chain position on the Aave platform.

The incident occurred while the liquidators were attempting to consolidate funds from Alameda wallets into a single multi-sig wallet.

In the process of exiting a borrow position on Aave, the liquidators removed extra collateral, putting the funds at risk of liquidation.

As a result, the position was liquidated twice in a span of just nine days, resulting in a total loss of 4.05 aWBTC, which creditors will not be able to recover.

In addition to this loss, the liquidators also made several failed transactions while trying to remove large amounts of LDO tokens.

They failed to notice that the tokens were still vested, and only managed to transfer the funds in smaller amounts of 10,000 LDO tokens after multiple failed attempts.

Despite these setbacks, the liquidators have been able to transfer approximately $1.4 million worth of crypto to the creditors’ multi-sig wallet in the past two weeks, from multiple wallets associated with Alameda.

However, there are still over 50 Alameda wallets with assets locked inside, with the largest being worth over $14 million, according to Arkham.

It is worth noting that the liquidators began consolidating funds just 10 hours after losing $1.7 million worth of digital assets in a hack that occurred in December.

Tags

Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.