Liquidators drive the point home – Last November, the trading platform FTP extension sank, taking her sister company Alameda Research with her. Since then, the funds of the defunct entities have been placed under the control of liquidators. Unfortunately, the latter chains the errors.
Liquidation upon liquidation
Faced with the collapse of FTX and Alameda Research, a company was instructed to liquidate the funds of both platforms. However, they don’t necessarily seem comfortable with the process. The internet user reveals it Arkham Intel on Twitter.
That’s how it all began on January 14, when Alameda Research’s liquidator account was also liquidated. In total, more thanone million dollars I was liquidated from the platform Aave on level 2 Optimism.
Surprisingly, it seems it already was two weeks that the account was insolvent. This demonstrates a cruel lack of attention and professionalism on the part of the company in charge of the liquidation.
As you may have understood, this fiasco did not stop at just one liquidation. In recent weeks, the settlement account has lost nearly $11 million in various liquidations. Too bad for a liquidator to be the victim of so many liquidations.
So when the company took over the account, it had a ETH short position of 9,000 ETH, backed by a USDC 20 million guarantee. To date, the position includes only $1.1 million in ETH, collateralized by 1.4 million USDC.
Amazing movements
It would be possible to point the finger at the difficult conditions encountered by the market for justify these liquidations. However, upon closer inspection, it would seem that the liquidator is to blame.
The liquidator began moving funds around December 29. Since then, many more than astonishing movements have been identified.
“On the morning of December 29, $7 million USDC and $4 million DAI were withdrawn from AAVE and sent to a separate Optimism L2 0x7b7 account. This came about 30 hours after liquidators began moving assets out of Alameda’s wallets in response to the mainline attack. »
This pullback has pushed the position perilously close to liquidation. Finally, without the intervention of the curator, $11.4 million I was liquidated on Aave.
Furthermore, it would appear that these could have been avoided. Initially, the liquidator probably should have prioritized the health of positions before making transfers.
“Surprisingly, there were some out-of-portfolio trades before and during the liquidation. In the middle of two liquidation operations, account 0x997 was sending 5 digits of OP to account 0x7b7. We really don’t know why this was prioritized over closing the position. »
However, we hope that the liquidators will stop losing these sums unnecessarily. In fact, FTX users still have hopes of getting some of their deposits back.
In the last few twists and turns of the case, it was validated Sam Bankman Fried had opened a $65 billion credit line to Alameda Researchobviously using user funds.
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