In the world of cryptocurrency, the recent wave of bankruptcies has created a goldmine for lawyers and restructuring officers. Despite the challenges faced by companies like Voyager Digital, there is a silver lining for those in the legal profession. A recent filing by McDermott Will & Emery LLP, the law firm representing Voyager’s creditor committee, reveals the staggering amount of $5.17 million requested for compensation during the third interim fee period of March to May 2023. This final provisional fee application sheds light on the lucrative nature of these bankruptcy cases.
Key Points:
- Voyager Digital’s bankruptcy case, which began in July 2022, is the first to emerge after the “crypto winter” in the cryptocurrency industry.
- McDermott Will & Emery LLP provided legal counsel throughout the Chapter 11 cases, ensuring the committee maximized recoveries for general unsecured creditors.
- Responsibilities of the legal team included advising the committee, participating in meetings and negotiations, and safeguarding the committee’s interests.
- Other prominent law firms, including Kirkland & Ellis, have also billed significant amounts for their services in relation to crypto bankruptcy cases.
- FTX CEO, John J. Ray III, is reportedly earning $1,300 per hour overseeing his firm’s bankruptcy and restructuring.
While the crypto industry may be experiencing a winter, the legal profession is basking in springtime profits. Lawyers and restructuring officers are capitalizing on the complexities of these bankruptcy cases, accumulating substantial financial rewards. As the crypto landscape continues to evolve, it seems that the legal entities involved will continue to thrive, thanks to the plethora of opportunities presented by these turbulent times.
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