Alameda liquidators hit with liquidation for second time in 3 days Alameda liquidators hit with liquidation for second time in 3 days
Alameda Research's liquidator positions have been liquidated twice in less than four days due to forcibly closing leveraged positions.
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Updated: Jan. 14, 2023 at 4:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
According to Arkham Intelligence, Alameda Research liquidators were liquidated for the second time in three days in light of recent market movements.
Alameda liquidators wrote off $15,000 of Curve DAO token (CRV) debt on Jan. 14 in exchange for 0.83 wrapped Bitcoin (WBTC) — or roughly $17,600 of their collateral.
Alameda still holds a position short $16,500 of CRV — collateralized by $23,000 WBTC, according to Arkham Intelligence.
Second liquidation in three days
After the loss of roughly $1.7 million in funds through mixers often used by hackers on Dec. 28, 2022, Alameda liquidators were forced to become active on-chain to move assets to safer multi-signature wallets.
Despite Alameda liquidators’ best efforts to secure all funds, Arkham analysis revealed that “significant 7- and 8-figure sums of capital” was left stranded in Alameda wallets.
“On the wallet 0x712, liquidators attempted to remove assets from a borrow position on the DeFi protocol [Aave].
Rather than paying back the debt to close out the position, the liquidators opted to remove all extra collateral, putting the position in danger of liquidation.”
In doing so, Alameda liquidators caused a liquidation of roughly four WBTC — worth $72,000 — in addition to a penalty slashed from the liquidated collateral when forcibly closing the wallet’s AAVE positions.
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Josh O'Sullivan
Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.
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Curve DAO (Decentralized Autonomous Organization) is a decentralized platform built on the Ethereum blockchain that aims to provide a stable and efficient market for trading stablecoins.
Wrapped Bitcoin
$66,036.62
Wrapped Bitcoin delivers the power of Bitcoin with the flexibility of an ERC20 token.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.