Alameda Research’s Wallet Sees $13 Million Boost Amid Bankruptcy Recovery

Massive Transfers Fuel Recovery Efforts

In a shocking turn of events, nearly $13 million has flowed into the consolidation wallet of the beleaguered crypto trading firm Alameda Research, all within just 24 hours. Blockchain security outfit PeckShield reported the influx, underscoring the ongoing turbulence in the crypto sector, particularly following the firm’s bankruptcy filing.

What Went In?

The wallet received significant amounts including:

• $6 million in Tether (USDT)
• $2.5 million in Ether (ETH)
• $4.5 million in USD Coin (USDC) from an anonymous source
• 30,000 Lido tokens, valued at around $65,500

One might wonder why Bitfinex sent approximately $8.5 million in crypto to Alameda’s consolidation address. According to Bitfinex representatives, Alameda’s account held funds on the exchange, prompting the collaboration with liquidators to reclaim those remaining assets.

The Bankruptcy Background

On November 11, Alameda filed for bankruptcy protection, along with about 130 other companies under the FTX Group umbrella. This was not just a typical business failure but a crash that sent shockwaves through the crypto landscape.

Liquidation Losses on the Rise

Despite the substantial recovery efforts, it’s not all rainbows and butterflies. Liquidators have faced losses reportedly exceeding $11.5 million—figures that include what many are calling preventable mistakes in managing Alameda’s trading accounts. For example, an attempt to consolidate funds on the DeFi lending platform Aave resulted in the loss of $72,000 in digital assets due to precarious management of collateral.

Past Woes of Alameda

Interestingly, Alameda Research had its own brushes with disaster before the FTX saga. According to ex-employees, the firm nearly collapsed in 2018, primarily due to an inefficient algorithm that struggled to accurately predict market price changes, leading to a series of unprofitable trades.