According to Arkham Intelligence, the Alameda Research liquidators were liquidated for the second time in three days in light of recent market movements.
Alameda liquidators canceled $15,000 of Curve DAO (CRV) token debt on Jan. 14 in exchange for 0.83 Wrapped Bitcoin (WBTC), or roughly $17,600 of their collateral.
Alameda still has a short position of $16,500 of CRV, collateralized by $23,000 of WBTC, according to Arkham Intelligence.
Second settlement in three days
After the loss of approximately $1.7 million in funds through mixers commonly used by hackers on December 28, 2022Alameda liquidators were forced to go on-chain to move assets to more secure multi-signature wallets.
Despite the best efforts of the Alameda liquidators to secure all funds, Arkham’s analysis revealed that “significant 7- and 8-figure principal amounts” were stranded in Alameda’s wallets.
“In wallet 0x712, liquidators tried to remove assets from a lending position in the DeFi protocol [Aave].
Rather than pay down the debt to close out the position, the liquidators chose to remove all additional collateral, putting the position in danger of liquidation.”
In doing so, the Alameda liquidators caused the liquidation of approximately four WBTC, worth $72,000, in addition to a fine clipped from liquidated collateral by forcibly closing the AAVE wallet positions.
