Alameda Research liquidators lost $72,000 during a fund consolidation attempt
The loss occurred while Alameda Research liquidators were attempting to close a borrow position on Aave, but instead, removed the extra collateral used for the position. The liquidators of Alameda Research continue to encounter obstacles in their efforts to recover funds for creditors. Crypto analytics firm Arkham disclosed in a thread on Twitter that Alameda Research liquidators lost $72,000 worth of digital assets on the decentralized finance (DeFi) lending platform Aave while trying to consolidate funds into a single multi-sig wallet. 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 WBTC, which creditors will now not be able to recoup. This resulted in the liquidation of around 4 WBTC, $72K at current prices. When positions are forcibly closed on AAVE, a penalty is also slashed ...