Breaking: Voyager Crypto Exchange to Pay $1.1M in Legal Fees!

Key Points:

• Crypto companies like Voyager Digital, Celsius, and BlockFi are filing for bankruptcy due to the 2022 bear market.
• Law firms like Kirkland & Ellis are charging millions of dollars in legal fees for representing these companies in restructuring during the bankruptcy proceedings.
• Critics point out that these high legal fees mean that creditors lose out as the dwindling pot of money is eaten up.

Kirkland & Ellis charged Voyager Digital $1.1 million in legal fees for work done on the crypto lender’s bankruptcy case in April.

The firm’s highest-paid partners are charging upwards of $2,000 an hour for their work on the case, while some billed hundreds of thousands of dollars in fees for the month. George W. Hicks Jr., P.C, one of Kirkland & Ellis’ litigation partners, billed $153,211 in fees across 87.8 hours of work, while Nicholas Adzima, an associate, billed 118 hours and totaled $147,906 in compensation for the month.

Kirkland & Ellis is one of the world’s largest law firms, and has brought in over $6 billion in revenue, according to a report by Law.com. The firm is representing a number of crypto companies in restructuring that fell into Chapter 11 during the bear market of 2022, including Celsius and BlockFi.

The series of bankruptcies brought on by the 2022 bear market has been a boon for law firms. According to Bloomberg Law, FTX’s bankruptcy fees have already topped $200 million, while Celsius has already racked up over $50 million in fees in its proceedings. Some critics have pointed out that the long processes and high legal fees mean that creditors lose out as the dwindling pot of money is eaten up by attorney fees.

As a result of the high legal fees, Voyager bankruptcy claims are currently trading at 40 cents on the dollar on X-Claim, a bankruptcy claim trading marketplace, while FTX is trading at 28.25 cents, and Celsius at 28.5 cents.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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