{"id":539355,"date":"2023-01-14T00:40:00","date_gmt":"2023-01-13T21:40:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/alameda-research-liquidators-lost-72k-during-fund-consolidation-attempt\/"},"modified":"2023-01-14T00:40:00","modified_gmt":"2023-01-13T21:40:00","slug":"alameda-research-liquidators-lost-72k-during-fund-consolidation-attempt","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/alameda-research-liquidators-lost-72k-during-fund-consolidation-attempt\/","title":{"rendered":"# Alameda Research liquidators lost $72K during fund consolidation attempt"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a368c086d183\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a368c086d183\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/alameda-research-liquidators-lost-72k-during-fund-consolidation-attempt\/#%E2%80%9D_Alameda_Research_liquidators_lost_72K_during_fund_consolidation_attempt_%E2%80%9C\" >&#8221; Alameda Research liquidators lost $72K during fund consolidation attempt  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Alameda_Research_liquidators_lost_72K_during_fund_consolidation_attempt_%E2%80%9C\"><\/span>&#8221; Alameda Research liquidators lost $72K during fund consolidation attempt  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMmI4N2JjY2EtYjZhZS00NmVjLWE3MGMtMWZjOWVhZmU0ZDJkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>The liquidators of Alameda Research continue to encounter obstacles in their efforts to recover funds for creditors.\u00a0Crypto analytics firm Arkham disclosed on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> that the liquidators lost $72,000 worth of digital assets on the decentralized finance (DeFi) lending platform Aave while trying to consolidate funds into a single multisignature wallet. <\/p>\n<p>The liquidators were attempting to close a borrow position on Aave but instead removed extra collateral used for the position, putting the assets at risk of liquidation. Arkham reported that over nine days, the loan was liquidated twice for a total of 4.05 Wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed Bitcoin (WBTC), which creditors will now not be able to recoup.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This resulted in the liquidation of around 4 WBTC, $72K at current prices.<\/p>\n<p>When positions are forcibly closed on AAVE, a penalty is also slashed from the liquidated collateral.<\/p>\n<p>The liquidators, themselves, were liquidated. Are they in over their heads? <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/ALjFnj7S56\">pic.twitter.com\/ALjFnj7S56<\/a><\/p>\n<p>\u2014 Arkham | Crypto Intelligence (@ArkhamIntel) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ArkhamIntel\/status\/1613610847271809024?ref_src=twsrc%5Etfw\">January 12, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>According to Arkham, \u201cOver the past 2 weeks, around $1.4M of tokens has been steadily returned to this central multisig from scattered Alameda wallets.\u201d However, significant sums of capital still remain stranded in over 50 Alameda wallets, the largest of which is worth over $14 million.<\/p>\n<p>Arkham shared that the operators continue to make on-chain mistakes. For example, when attempting to withdraw funds from a vesting recipient wallet, the liquidators failed to remove $1.75 million in LDO and failed again when trying to remove \u201c$238K or 250K tokens.\u201d The LDO tokens were still vesting, and the liquidators had to resort to taking out 10,000 LDO at a time to transfer to the central wallet, which resulted in nine failed transactions.<\/p>\n<p>Arkham\u2019s analysis suggests there are still DeFi positions held in other Alameda wallets, implying that liquidators may be struggling to manage the process.<\/p>\n<p><strong><em>Related:\u00a0<\/em><\/strong><strong><em>Sam Bankman-Fried\u2019s Alameda Research troubles predate FTX: Report<\/em><\/strong><\/p>\n<p>On Jan. 2, Cointelegraph reported that Alameda Research\u2019s troubles predated FTX. As reported by Cointelegraph, Alameda Research almost collapsed in 2018, even before FTX was in the picture.<\/p>\n<p>Former employees  at Alameda Research also disclosed that the algorithm used for trading at\u00a0Alameda was designed to make a large number of fast trades. However, the firm was losing money by incorrectlypredicting the direction of price movements.\u00a0<\/p>\n<p>Furthermore, it was revealed that in 2018, Alameda lost nearly two-thirds of its assets due to the fall in price of XRP (XRP). The firm was on the brink of collapse but was rescued by CEO Sam Bankman-Fried, who raised funds from lenders and investors on the promise of returns of up to 20% on their investment.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/alameda-research-liquidators-lost-72-000-during-a-fund-consolidation-attempt\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Alameda Research liquidators lost $72K during fund consolidation attempt &#8220; The liquidators of Alameda Research continue to encounter obstacles in their efforts to recover funds for creditors.\u00a0Crypto analytics firm Arkham disclosed on Twitter that the liquidators lost $72,000 worth of digital assets on the decentralized finance (DeFi) lending platform Aave while trying to consolidate&#8230;<\/p>\n","protected":false},"author":1,"featured_media":539356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/2b87bcca-b6ae-46ec-a70c-1fc9eafe4d2d.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,74860,76556,135234,117,71407],"class_list":["post-539355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-fintech","tag-ftx","tag-business","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/539355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=539355"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/539355\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/539356"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=539355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=539355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=539355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}