Liquidators of Alameda Research Report $11.5M in Losses

• Liquidators of Alameda Research reportedly incurred at least $11.5 million in losses since taking control of Alameda’s trading accounts.
• Arkham Intelligence reported that one wallet under the control of liquidators has seen a string of „significant losses“ due to liquidations, some of which were „preventable losses.“
• The account ending in 0x997 initially had a short position of 9,000 Ether ETH $1,580 Ethereum +0.01% MARKET CAP$193.29bVOL. 24H$679.01m ETH $431.42k ($10.8 million) against the collateral of $20 million in USD Coin USDC $1.00 USD Coin -0.01% MARKET CAP$43.59bVOL. 24H$20.02m USDC $20.02m and $4 million in Dai DAI $1.00 Dai +0.02% MARKET CAP$5.10bVOL. 24H$6.23m DAI $6.24m , with a net balance of $15.2 million when the liquidators first took control.

On January 16th, a thread from Arkham Intelligence reported that the liquidators of Alameda Research had incurred at least $11.5 million in losses since taking control of Alameda’s trading accounts. According to Arkham, one wallet under the liquidator’s control has seen a string of „significant losses“ due to liquidations, some of which were „preventable losses“.

The account ending in 0x997 originally had a short position of 9,000 Ether ETH $1,580 Ethereum +0.01% MARKET CAP$193.29bVOL. 24H$679.01m ETH $431.42k ($10.8 million) against the collateral of $20 million in USD Coin USDC $1.00 USD Coin -0.01% MARKET CAP$43.59bVOL. 24H$20.02m USDC $20.02m and $4 million in Dai DAI $1.00 Dai +0.02% MARKET CAP$5.10bVOL. 24H$6.23m DAI $6.24m , with a net balance of $15.2 million when the liquidators first took control. Unfortunately, this position lead to the liquidators losing $4.85 million in the largest single liquidation and $11.5 million in total.

It was reported that some of these losses were preventable. Unfortunately, the exact details of how the losses were incurred and how they could have been prevented are not known at this time. However, it is clear that the liquidators have been forced to make difficult decisions in order to manage the accounts under their control.

It is likely that the liquidators of Alameda Research will be under increased scrutiny in the coming months as more information about the losses is revealed. In the meantime, it is important to remember that these losses are not necessarily indicative of any wrongdoing or mismanagement on the part of the liquidators. Rather, these losses are a result of the difficult decisions that must be made when managing large trading accounts.