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Voyager Digital, a cryptocurrency brokerage presently dealing with bankruptcy, is mandated to disburse $1.1 million in legal advisory fees to the law firm Kirkland & Ellis, in relation to its ongoing bankruptcy proceedings.
Voyager Digital, a cryptocurrency brokerage facing bankruptcy, is reportedly required to make a payment of $1.1 million to their legal constant, Kirkland & Ellis, for costs and fees related to their bankruptcy proceedings in April.
Documents at hand show that Kirkland & Ellis law firm adopted a combined hourly charge of $1,313.18 for various services rendered through the month of April. This cumulative amount assessed for services from attorneys and paralegals within the law firm resulted in a total amount exceeding $1.4 million.
Legal services can be quite costly, especially in complex cases like cryptocurrency bankruptcies. Kirkland & Ellis's billing of $1.1 million for their services to Voyager Digital highlights the intricate nature of navigating legal matters in the crypto space. It's crucial for…
— Monis Inhonvi (@monis8910) June 28, 2023
Prominent individuals within the law firm incurred an hourly charge that topped $2,000 for their specialized services.
It’s worth noting that Kirkland & Ellis is renowned for their representation of multiple cryptocurrency firms during their bankruptcy proceedings, with their client list including names like BlockFi and Celsius.
The bankruptcy proposal of Voyager was sanctioned by the United States Bankruptcy Court for the Southern District of New York on May 17, 2023. This was the third proposal submitted, on May 5, after Binance.US withdrew their intention to purchase $1 billion in assets from Voyager on April 25.
Back in July 2022, Voyager sought protection under Chapter 11 bankruptcy due to the considerable repercussions of the crypto credit crisis that had adversely affected several lenders and brokers within the industry. Under former CEO Steve Ehrlich, Voyager had been a publicly listed firm in Canada.
At the time Voyager filed for bankruptcy, it revealed liabilities anywhere between $1 billion to $10 billion, thus indicating the scale of their financial obligations and the circumstances that compelled them to file for bankruptcy protection.
Voyager’s situation is not unique when it comes to paying substantial fees during bankruptcy proceedings. Another example is FTX, another crypto company currently in bankruptcy, which incurred over $120 million in financial and legal advisory fees between Feb. 1 and April 30.