Bankrupt cryptocurrency brokerage Voyager Digital is obligated to pay $1.1 million in legal fees to Kirkland & Ellis, its legal advisor, for their involvement in the company’s bankruptcy proceedings in April.
The documents reveal that Kirkland & Ellis implemented a blended hourly billing rate for various services, with the cumulative fees surpassing $1.4 million.
Notably, certain high-ranking members of the law firm charged hourly rates exceeding $2,000 for their professional services.
Kirkland & Ellis: Leading Law Firm Representing Cryptocurrency Companies
Kirkland & Ellis is a prominent law firm known for representing multiple cryptocurrency companies in bankruptcy proceedings.
Their clientele includes industry giants like BlockFi and Celsius. With their expertise in the cryptocurrency space, Kirkland & Ellis has been instrumental in navigating complex legal matters for these companies.
Voyager’s Bankruptcy Plan Approval and Background
The United States Bankruptcy Court for the Southern District of New York approved Voyager’s bankruptcy plan on May 17, 2023.
The company’s third bankruptcy plan was proposed on May 5 after Binance.US withdrew its plan to purchase $1 billion worth of Voyager assets on April 25.
Voyager initially filed for Chapter 11 bankruptcy protection in July 2022, citing the severe impact of the crypto credit crisis on lenders and brokers across the industry.
Financial Obligations and Previous Status
At the time of filing for bankruptcy, Voyager disclosed liabilities ranging from $1 billion to $10 billion, highlighting the extent of its financial obligations and the circumstances that led to the decision to seek bankruptcy protection.
Formerly a publicly traded company in Canada under the leadership of Steve Ehrlich, Voyager faced significant challenges amidst the crypto credit crisis.
