Kirkland & Ellis is currently the legal representative for several cryptocurrency exchanges facing bankruptcy.
Kirkland & Ellis Co. is owned by Legal Counsel Accused Bankrupt crypto brokerage Voyager Digital was paid $1.1 million in legal fees for its work in April.
The fund is intended for fees and expenses related to his work in the previous brokerage firm’s bankruptcy process. According to the documents, some of Kirkland & Ellis’ highest-paid partners are charging up to $2,000 an hour for their part of the litigation. Some other lawyer billed a bankrupt cryptocurrency exchange to $150,000 for the month.
Significantly, the law firm had a combined hourly billing rate of $1,313.18 for all services in April.
One of Kirkland & Ellis’ litigation partners, George W. Hicks Jr. , PC, $153,211 in fee for 87.8 hours of work. Another assistant, Nicholas Adzema, sought compensation of $147,906 for 118 hours worked in April.
Beyond Voyager Digital: Fake Legal Fees for Rock Crypto Firms
Kirkland & Ellis is currently the legal representative for several cryptocurrency exchanges facing bankruptcy. The past year was a tough time for the cryptocurrency industry at large with a brutal bear market that forced many into bankruptcy and later bankruptcy. Voyager Digital, Celsius Network, BlockFi, and several other crypto-related companies including mining companies have filed for bankruptcy protection against investors and other creditors.
Shockingly, the popular cryptocurrency exchange FTX had the same fate when it resorted to filing for Chapter 11 bankruptcy in the US. FTX’s implosion and bankruptcy shook the entire crypto industry and further imploded a few companies.
While this was a bearish period for crypto companies, it turned out to be a bull market for law firms.
By October of last year, Celsius Network had already racked up more than $3 million in legal fees payable to Kirkland & Ellis and another law firm called Akin Gump. From July 13 to July 31, Kirkland and Ellis charged Celsius Network $2.6 million in legal fees, while Akin Gump demanded $750,000 from the ailing exchange. This was in addition to all the financial difficulties that Celsius faced at the time.
Similarly, FTX’s June 15 court filing showed that between February 1, 2023, and April 30, 2023, the bankrupt cryptocurrency exchange paid more than $121 million in legal, advisory, and financial services. These fees were paid to the law firm representing FTX, Sullivan & Cromwell, the investment banking firm Jefferies Group LLC, and the restructuring advisory firm Alvarez and Marsal.
It is worth noting that the banking company got the lowest percentage of fees, while the law firm got the highest percentage. To date, Celsius Network has spent over $50 million on its bankruptcy legal proceedings while FTX’s legal fees have reached over $200 million. Fintech Ripple Labs recently revealed that its more than two-year lawsuit with the Securities and Exchange Commission (SEC) has cost more than $200 million.
the next
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.