Report Shows Alameda Research Lost $1 Million In Liquiations

Cryptocurrency analytics company Arkham reported that Alameda Research, a troubled crypto trading firm, lost over $1 million in assets from liquidation on Jan 14.

According to the report shared with The Block, the account held 9,000 ETH worth $10.8 million, with $20 million USDC and $4 million DAI as collateral, with a net balance of $15.2 million. 

However, transactions were made before and during the liquidation indicating that whoever was in control of the wallet was either unable to understand how to close out the positions or was unwilling to.

This resulted in the account being “forcibly reduced” and $1.2 USDC liquidated for 731 ETH, leaving the account with a $1.1 million ETH short against $1.14 million USDC and a net balance of $300,000.

This report follows the liquidation of $72,000 in funds from Alameda on the Aave platform, after they were consolidated into a single wallet on January 12. 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.

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.