BlocksInform
The liquidators of the bankrupt trading center of Sam Bankman-Fried, Alameda Research, have reportedly suffered a considerable loss of more than $11 million since the beginning of the year due to multiple windings-up.
According to blockchain analytics platform ARKHAM Intelligence, Alameda lost $11.5 million in liquidations, with a single loss of $4.85 million and Avoidable loss of life. of over $4 million.
Over the past two weeks, the executor has suffered large losses:
Most significant wind-up: $4.85 million.
Total amount disbursed: $11.5 million.
Preventable losses: $4M+
— Arkham (@ArkhamIntel) January 16, 2023
String of Liquidations
In a series of tweets on Monday, Arkham said Alameda incurred a massive loss on decentralized finance (DeFi) lending protocol AAVE after the company moved $7 million in USDC stablecoins and $4 million in DAI from the platform on December 29, 2022, to an Optimism L2 account.
The blockchain platform explained that the movement of assets began 30 hours after the liquidators started transferring funds out of Alameda’s wallet following an attack on its mainnet.
According to the tweets, the withdrawal of assets from AAVE's active position at Optimism put the company's position at a "dangerously close liquidation risk".
A Preventable Loss
This decision ultimately led to the sale of $11.4 million from the USDC to wind-up robots on Optimism. At the same time, the CRF received $100,000 in liquidation tax, the corporation having lost over $1 million on January 14, 2023.
Arkham also pointed out that the loss could have been avoided if the executors had used the aave call feature, allowing users to close their positions during activation. It would have saved the business $15 million rather than $11 million. In other words, we could have avoided about $4 million in losses.
Betting Against Ether
With Alameda losing over a million due to the movement of assets between protocols, Arkham said the January 14 liquidation was the latest in a string of liquidations spanning almost two weeks of the account being handled by the liquidators. The latter resulted in USDC's liquidation of $1.2 million for ETH 731.
Arkham also disclosed that one of Alameda’s wallets ending in 0x997 maintained a 9,000 Ethereum (ETH) position and was worth around $10.8 million against the collateral of $20 million in USDC and $4 million in DAI with a net balance of $15.2 million before the liquidators gained access to the account earlier this month.
However, the same portfolio now holds crypto assets with a "ETH short estimate of $1.1M versus $1.4M in USDC: net balance of 300 K."
When taken over by Liquidators as of 2 weeks ago, 0x997 maintained a short position of 9000 $ETH ($10.8M) against collateral of $20M USDC and $4M DAI: net balance of $15.2M.
Today, the present value of the account is $1.1 million short ether vs. USDC $1.4 million: $300,000 net balance. pic.twitter.com/k4WiEWfFlB
— Arkham (@ArkhamIntel) January 16, 2023
