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Arkham: Alameda Wallet Suffers $11.5M Losses Under Liquidator Management

The liquidators of Alameda Research

The liquidators of Alameda Research have reportedly incurred at least $11.5 million in losses since taking control of Alameda’s trading accounts.

On January 16, a Twitter thread from Arkham Intelligence reported that one wallet under the control of liquidators has seen a string of “significant losses” due to liquidations, some of which were “preventable losses.”

Arkham reported that the account ending in 0x997 initially had a short position of 9,000 Ether ($10.8 million) against the collateral of $20 million in USD Coin and $4 million in Dai, with a net balance of $15.2 million when the liquidators first took control.

After a string of liquidations spanning almost two weeks however, the account’s current value now stands at “$1.1M short Ether against $1.4M USDC: net balance of $300K.”

Another liquidation occurred when Alameda wallets removed $7 million in USDC and $4 million in DAI from the decentralized crypto lending platform Aave to a separate Optimism L2 account on December 29, around 30 hours after liquidators began moving assets out of Alameda wallets.

This removal of funds is believed to have placed the position at a high risk of liquidation, resulting in $11.4 million of USDC being sold off to liquidation bots on Optimism, while the Aave treasury took another $100,000 in USDC as liquidation tax.

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