Alameda Research liquidators were liquidated for US$72,000 from an on-chain position on decentralized finance (DeFi) lending platform Aave while trying to consolidate funds from Alameda wallets into a single multi-sig wallet.

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Fast facts

  • While trying to exit a borrow position on Aave, the liquidators first removed the extra collateral, putting the funds at risk of liquidation.
  • The position was liquidated twice for a total of 4.05 aWBTC worth US$72,000, in the span of nine days, which creditors will not be able to recover, according to crypto intelligence firm Arkham.
  • Arkham noted that the liquidators also made nine failed transactions while trying to remove large amounts of LDO, without noticing that the tokens were still vested. They managed to transfer the funds in smaller amounts of 10,000 LDO tokens after the failed attempts.
  • Approximately US$1.4 million worth of crypto has been transferred to the creditors’ multi-sig wallet in the past two weeks, from multiple wallets associated with Alameda.
  • The liquidators started consolidating the funds 10 hours after apparently losing US$1.7 million worth of digital assets in a hack in December.
  • There remain over 50 Alameda wallets with assets locked inside, the largest of which is worth over US$14 million, according to Arkham.

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