Alameda wallets under liquidator’s control have been liquidated for a total of $11.5 million.

Alameda Research liquidators have reportedly lost at least $11.5 million since taking control of Alameda’s trading accounts.

On Jan. 16, a Twitter thread from Arkham Intelligence reported that one wallet under the liquidator’s control contained “Major losses” due to liquidate, some of which are “Preventable loss”

Arkham noted that accounts ending in 0x997 initially had short positions of 9,000 Ether (ETH) ($10.8 million), compared to $20 million in collateral on USD Coin (USDC) and $4 million in Dai ( DAI ) with a net worth of $15.2 million when liquidators first took control of the wallet.

But after being liquidated many times, which lasted almost two weeks. The account’s current value is now at “short Ethe $1.1M vs Margin $1.4M USDC : with a net balance of $300K”.

The re-liquidation occurred when Alameda wallets withdrew $7 million in USDC and $4 million in DAI from decentralized crypto lending platform AAVE to the Optimism L2 account on Dec. 29, about 30 hours after the liquidators started. Move assets out of Alameda wallet

This resulted in $11.4 million of USDC being forced to be sold to bots while the AAVE Treasury collected another $100,000 of USDC as liquidation tax.

Arkham explains that if the liquidator uses the function to close the position immediately by selling the collateral instead of pulling the collateral out of the wallet. At least $15 million could be preserved instead of only $11 million recoverable.

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