A Staggering Legal Bill for Voyager’s Creditors
McDermott Will & Emery, the law firm representing Voyager’s committee of unsecured creditors, has sent the group a bill of over $5 million for their work between March and May. This bill adds to the perception that legal firms are profiting at the expense of the creditors they represent.
Main Points:
- The latest bill brings the total compensation charged to the group of creditors to over $16 million, surpassing the initial budget of $11.2 million.
- The blended hourly rate for all timekeepers from McDermott Will & Emery stands at $1026.76.
- The biggest areas of billing include work on plan and disclosure settlement, such as discussing sale options and examining objections from stakeholders.
- The market downturn and bankruptcies of crypto firms have been profitable for law firms.
- Voyager filed for bankruptcy in 2022 and tried to broker deals with FTX and Binance, but both deals fell through.
Law Firms Capitalizing on Crypto Bankruptcies
The collapse of several prominent crypto entities during the crypto winter has led to substantial legal fees for law firms. For example, Kirkland & Ellis charged Voyager $1.1 million for their work in April. Lawyers representing Celsius, another casualty of the crypto winter, billed the firm nearly $53 million in fees, and FTX has amassed a legal bill exceeding $200 million since filing for bankruptcy.
Hot Take
The bankruptcy of crypto firms has become a lucrative opportunity for law firms to profit from the legal process, leaving creditors with hefty bills. This highlights the need for clearer regulations and protections for creditors in the crypto industry.
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