Bankrupt cryptocurrency brokerage Voyager Digital has been mandated to pay $1.1 million to its legal advisor, Kirkland & Ellis, for fees and expenses incurred during the company’s bankruptcy proceedings in April.
The law firm, renowned for representing cryptocurrency companies in similar situations, implemented a blended hourly billing rate and accumulated fees exceeding $1.4 million.
Key Points:
- Kirkland & Ellis implemented a blended hourly billing rate of $1,313.18 for legal services provided in April, with cumulative fees exceeding $1.4 million.
- Certain high-ranking members of the law firm charged hourly rates surpassing $2,000 for their professional services.
- Kirkland & Ellis has represented other cryptocurrency companies involved in bankruptcy proceedings, such as BlockFi and Celsius.
- Voyager’s bankruptcy plan was approved by the United States Bankruptcy Court for the Southern District of New York on May 17, 2023.
- Binance.US backed out of a deal to purchase $1 billion worth of Voyager assets, prompting the proposal of a third bankruptcy plan on May 5.
- Voyager filed for Chapter 11 bankruptcy protection in July 2022 due to the impact of the crypto credit crisis, revealing liabilities ranging from $1 billion to $10 billion.
- FTX, another company undergoing bankruptcy proceedings, accumulated over $120 million in financial and legal advisory fees between February 1 and April 30.
