The Committee of Unsecured Creditors for Voyager
The committee of unsecured creditors for Voyager has received an invoice from the legal team McDermott Will & Emery for $5.1 million for services provided between March and May. The group has been charged a total of $16.4 million in compensation, surpassing the projected amount of $11.2 million established during the restructuring process. You, as a reader, may find it interesting to know that creditors have contributed $8.9 million towards the invoiced compensation so far.
Key points:
– McDermott lawyers billed $1 million for 970.9 hours of labor connected to the plan and disclosure settlement.
– A failed agreement regarding the sale of the company’s assets to FTX incurred significant costs.
– Voyager has already paid Kirkland & Ellis $1.1 million for representing the exchange in the court case.
2022 Was a Year of Bankruptcies and Collapses
The collapse of the Terra ecosystem and the general decline in the cryptocurrency market led to significant losses for Voyager, resulting in the company filing for bankruptcy protection in July 2022. This collapse was just one of many prominent crypto collapses that occurred in 2022, which further intensified governmental scrutiny of the sector. In March 2022, seven American states sent cease-and-desist letters to Voyager over the company’s unregistered securities.
Key points:
– Bankruptcies increased due to the 2022 market slump, benefiting law firms financially.
– Companies like FTX and Celsius paid high legal expenses during this time.
– Detractors argue that these high costs and lengthy legal proceedings reduce the money available to creditors.
Hot Take
The high legal fees in the cryptocurrency sector have been a source of concern, as they can significantly reduce the funds available to creditors. The bankruptcy of Voyager and other collapses in 2022 have shed light on the need for more regulation and oversight in the industry to protect investors and ensure fair compensation for creditors. It remains to be seen how the sector will evolve and address these challenges in the future.
Continue reading on Coinpedia.org
By
By
By
By
By
By