According to crypto analytics firm Arkham, at least $4 million of these losses were preventable.
Alameda Research’s affiliates have reportedly made at least $11.5 billion in losses since taking control of Alameda’s trading account.
On January 16, the Arkham Intelligence Twitter account reported that the portfolio under the management of the liquidators had several “significant losses” from the liquidation, some of which were “impossible losses”.
For example, Arkham said that the account ends at 0x997 and initially had a short position of 9,000 Ether ETH ($1,568) ($10.8 million) against a contract of $20 million in USD Coin USDC ($1.00) and $4 million in Dai AIDS ($1.00), with a net worth of $15.2 million when the Marines first took control.
However, after the process of liquidation has passed for almost two weeks, the current account value stands at “$ 1.1 million Ether short vs. $ 1.4 million USDC: deposit of 300 $ 000 “.
Arkham said it was the latest development in “a series of market movements that destroyed many Alameda locations that opened during the bankruptcy.”
Another surge occurred when the Alameda wallet withdrew $7 million in USDC and $4 million in DAI from the crypto-lending platform Aave to a separate Optimism L2 account on December 1. February 29, about 30 hours after the liquidators began to remove assets from Alameda’s wallets.
It is believed that this withdrawal has put the situation at great risk of liquidation, resulting in the sale of $ 11.4 million USDC in liquidation robots on Optimism, while Treasury Aave took $ 100 Additional $ 000 in USDC as liquidation fees. Arkham explained that if the Marines had immediately closed the situation by selling contracts instead of removing the warrants from the portfolio, at least $15 million could have been saved rather than the $11 million received.
So that’s $4 million in avoidable losses. On January 13, Cointelegraph reported that investors at Alameda Research lost $72,000 in digital assets while pooling funds into a single wallet with Aave. The liquidators tried to close the loan position but they wrongly withdrew further support, putting the assets at risk of foreclosure. Within nine days, the loan defaulted twice, resulting in a loss of 4.05 Wrapped Bitcoin (WBTC), which creditors could not claim.
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