Kirkland & Ellis is the legal representative for several crypto exchanges currently facing bankruptcy.
Kirkland & Ellis, legal counsel Was accused Bankrupt crypto brokerage firm Voyager Digital collected $1.1 million in legal fees for its work in April.
The fund is for fees and expenses related to the predecessor brokerage firm’s work on its bankruptcy process. According to the documents, some of Kirkland & Ellis’ highest-paid partners charged up to $2,000 an hour for their portion of the litigation. Some other lawyers billed the bankrupt crypto exchange up to $150,000 for the month.
Notably, the law firm’s blended hourly billing rate for all services in April was $1,313.18.
One of Kirkland & Ellis’s litigation partners, identified as George W. Hicks Jr., PC, is seeking fees of $153,211 for 87.8 hours of work. Another colleague, Nicholas Adzima, requested $147,906 in compensation for 118 hours of work in April.
Beyond Voyager Digital: Fictitious Legal Fees Rock Crypto Firm
Kirkland & Ellis is the legal representative for several crypto exchanges currently facing bankruptcy. Last year was a terrible time for the wider crypto industry with a harsh bear market that forced many into insolvency and subsequent bankruptcy. Voyager Digital, Celsius Network, blockfiAnd several other crypto-related firms, including mining companies, filed for bankruptcy protection against investors and other creditors.
Shockingly, the same fate befell the famous cryptocurrency exchange FTX when it resorted to it. Admission for Chapter 11 bankruptcy in the United States. The FTX explosion and bankruptcy shook the entire crypto industry and led to the downfall of a few more companies.
While the period was bearish for crypto firms, it turned out to be a boom market for law firms.
By October last year, the Celsius Network had already arrived spent Legal fees of over $3 million owed to Kirkland & Ellis and another law firm named Akin Gump. Between July 13 and July 31, Kirkland and Ellis charged Celsius Network $2.6 million in legal fees, while Akin Gump asked the beleaguered exchange to pay $750,000. This was in addition to all the financial difficulties Celsius was facing at the time.
Similarly, FTX’s June 15 court filing Has shown Between February 1, 2023 and April 30, 2023, the bankrupt crypto exchange paid out over $121 million in legal, consulting and financial services. These charges were paid to FTX, the law firm representing Sullivan & Cromwell, investment banking firm Jefferies Group LLC and restructuring consulting firm Alvarez & Marsal.
Specifically, the banking firm received the smallest percentage of fees while the law firm received more. So far, Celsius Network has spent more than $50 million on its bankruptcy legal proceedings, while FTX’s legal fees have reached more than $200 million. Fintech company Ripple Labs recently revealed that it is in a more than two-year-long litigation with the Securities and Exchange Commission (SEC). Cost over $200 million.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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