Maverick-Crypto
@mr-maverick
105 Following
64 Followers
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The crypto investor lost $40 million after risky DeFi bets.
James Fickel, whose fortune is estimated at about $400 million, recently lost more than $40 million due to a series of leveraged transactions.
Fickel's investment strategy included betting on Ethereum (ETH) while shorting Bitcoin (BTC). He achieved this by borrowing Wrapped Bitcoin (wBTC) through Aave and converting it to Ethereum.
From January 10 to July 1, he borrowed 3,061 wBTC worth about $172 million and exchanged them for 56,445 ETH. According to reports, the average exchange rate during this period was about 0.054 wBTC per ETH.
However, since the beginning of August, Fickel has been closing this position, paying off its debt with a significant loss. He bought 882 wBTC using $12 million in USDC and 16,000 ETH worth about $39.9 million, reaching an average rate of 0.042 ETH/BTC.
His remaining wBTC debt on Aave now stands at 2,196 wBTC worth over $132 million, indicating a loss of approximately $43.7 million. 0 reply
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