Alameda Research liquidators have faced numerous setbacks in their attempts to recover lost funds for creditors, crypto analytics company Arkham tweeted on Wednesday.
According to its analysis, liquidation staff failed to conduct procedures properly. Liquidators improperly withdrew funds from vesting recipient wallets after failing to extract $1.75 million USD in Lido DAO Coin (LDO).
Explaining, it said: “The LDO tokens were still vesting, and as such the liquidators had to resort to taking out 10K LDO at a time to the central wallet. This was, however, not before sending 9 different failed transactions”
Additional cryptocurrencies affected include Aave, where liquidators misplaced $72,000 in assets on Aave, a decentralised finance (DeFi) lending platform.
Staffers liquidated a loan twice, totalling 4.05 Wrapped Bitcoin (WBTC). The funds cannot be recouped for creditors. The incident happened as liquidators attempted to pool funds in a single wallet, it added.
It explained further: “The existence of other DeFi positions still held in Alameda wallets suggests that this may be the case. Often, these positions are on alternative L1 chains. The screenshots below show spot assets on Ethereum, but all of these wallets hold positions on other protocols or chains.”
The developments come after Alameda liquidators lost $1.7 million to cyberattacks, forcing staff to move funds to a safe multi-signature wallet.
The news comes just a day after FTX attorney Andy Dietderich revealed FTX had “recovered $5 billion in cash and liquid cryptocurrencies.” He told courts in a statement on 11 January the bankrupt firm had been working to rebuild transaction history from the collapsed exchange.
