Alameda Research lost approximately $1 million in assets as a result of liquidation Friday night, according to a tip that crypto intelligence company Arkham.
The original account held 9,000 ETH worth $10.8 million as collateral, coupled with $4 million in DAI and 20 million USDC. The net balance of the account is currently $15.2 million.
Nevertheless, according to a report from Arkham dated January 14, the account was forced to be shuttered and $1.2 USDC was liquidated in exchange for 731 ETH. With a short sell of $1.1 million in ETH versus $1.14 million in USDC, the account now has a net balance of $30,000. According to Arkham's report:
“Surprisingly, transactions out of the wallet were made before and during liquidation, indicating that whoever was in control of the wallet either was unable to understand how to close out the positions, or was simply unwilling to.”
Prior to that, $72,000 in Alameda funds were consolidated into a single wallet on January 12 and liquidated on Avenue. That is what some Twitter users stated. In the occasion where Alameda funds were spotted exchanging wallets, Sam Bankman-Fried was involved.
However, it is unlikely that Bankman-Fried will be transferred to Alameda because he was unable to use the internet platforms until December 30, 2022, as a result of his detention in the Bahamas on December 12, 2022.
The attention should be turned from Alameda Research and their hedging techniques to risk management of FTX itself and why some customers are treated differently from others, says former BitMEX CEO Arthur Hayes in a direct inquiry to Sam Bankman-Fried. Hayes took the opportunity to share his opinions on the current FTX problem. He believes that Alameda won't go bankrupt if FTX liquidates it.