Alameda Liquidators Try To Consolidate Funds And Get Liquidated On Aave
The Alameda liquidators attempted to gather funds from multiple wallets into one by exiting an on-chain position, but this resulted in them being liquidated for a loss of $72,000.
Valentin
March 12, 2023
The Block reported that the liquidators of Alameda lost $72,000 while trying to recover funds for creditors on the DeFi lending platform Aave. They attempted to close a position by removing extra collateral, which led to the position being liquidated twice over a period of nine days for a total of 4.05 aWBTC, a token backed by Bitcoin.
These funds are no longer recoverable for creditors. The data is based on wallets tagged as relating to Alameda by The Block’s Vice President of Research Larry Cermak and used to label wallets on Ethereum block explorer Etherscan.
Funds from these wallets were consolidated into a single multi-sig controlled wallet, which currently holds $19.6 million of ether and $140 million of various tokens on Ethereum.
One fail after the other
It was further reported that the liquidators also attempted to withdraw large amounts of LDO tokens from one of the wallets, but failed to notice that many of the tokens were still being vested. According to crypto data platform Arkham, they made nine failed transactions before successfully withdrawing smaller amounts.
In the last two weeks, around $1.4 million has been returned to this wallet from various other wallets associated with Alameda. Prior to that, around 11,350 ether ($15.9 million) was sent to it from a wallet associated with crypto exchange Deribit.
The liquidators began consolidating the tokens after losing $1.7 million in an attack in December. They moved the tokens to crypto mixing services, presumably in an attempt to launder the funds.
