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Alameda Liquidators Are Fumbling the Asset Retrieval Process

2 mins
Updated by Ryan James
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In Brief

  • The liquidators are trying to move Alameda Research funds to a single centralized multi-sig wallet.
  • The Alameda Liquidators lost $72,000 in Aave.
  • The community mocks the liquidators for embarrassing on-chain behavior.
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The Alameda liquidators face multiple embarrassments while retrieving the assets from the wallets. They recently lost $72,000 to DeFi liquidation.

Since Sam Bankman-Fried has been out on bail, the Alameda wallets are under the close eye of on-chain investigators. The wallets were active, and the community discussed the possibility of Sam Bankman-Fried selling crypto from Alameda wallets.

But, the disgraced founder tweeted, denying moving funds from the Alameda wallets. He further claimed not to have access to them in the first place. The crypto intelligence firm Arkham revealed that hackers exploited over $1.7 million from the Alameda wallets. Today, Arkham put light on yet another embarrassment of Alameda.

Alameda Funds Being Moved to a Single Wallet

The role of the liquidators is to wind up the company’s affairs. They do this by calling in and using the company’s assets to pay off creditors and investors.

The Alameda Research funds were scattered over multiple addresses before the collapse of the Sam Bankman-Fried empire. After the $1.7 million hack, the Alameda liquidators have been trying to move the assets to a central multi-sig wallet, 0xF02e, according to Arkham. 

The new centralized wallet has over $167 million worth of tokens as of writing.

The Alameda Liquidators got Liquidated

While securing funds to a single multi-sig wallet, the Alameda Liquidators committed some “embarrassing on-chain faux pas,” claims the on-chain intelligence firm.

The Alameda Liquidators tried to withdraw LDO tokens while still under vesting, resulting in nine different failed transactions. Multiple failed transactions are also due to issues as silly as running “out of gas.”

Failed transactions by Alameda Liquidators
Source: Etherscan

The Alameda Liquidators got liquidated and lost over $72,000 worth of Wrapped BTC in the DeFi protocol Aave. They tried to close a borrowed position without paying back the debt and faced liquidation.

Due to Alameda Liquidator’s embarrassing on-chain behavior, the community mockingly questions the legal fees charged by them.

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Harsh Notariya
Harsh started investing in crypto during the 2021 bull market. He took the opportunity of the market crash in May to learn more about Bitcoin and blockchain technology. Since...