Voyager Digital’s Bankruptcy Battle Racks Up Millions in Legal Expenses

A caller tribunal filing from the now-insolvent Voyager Digital Holdings and its creditor committee revealed that ineligible expenses amounting to $16.5 cardinal person accumulated from July 22, 2022, done May 18, 2023. The records bespeak that betwixt March and May 2023, astir $5.17 cardinal successful ineligible fees were billed to the estate.

Lawyers and Restructuring Officers Are Profiting From the Slew of Crypto Bankruptcy Cases

Lawyers for Voyager’s creditor committee unveiled the ineligible costs concerning the company’s ongoing bankruptcy proceedings, which began successful July 2022, connected July 3, 2023. According to the filing, the 3rd interim interest play (March-May 2023) has a compensation petition of $5.17 million. The papers states that this is the last provisional interest exertion invoiced by the instrumentality steadfast McDermott Will & Emery LLP.

Furthermore, the filing asserts that the tribunal granted the interim compensation bid connected August 4, 2022. The attorneys explicate that Voyager’s Chapter 11 lawsuit was “the archetypal to commence pursuing a bid of events successful the cryptocurrency industry, which are collectively known arsenic the ‘crypto winter.'” McDermott details that passim the interest period, their litigation squad advised the committee successful each aspects of the Chapter 11 cases, including a assortment of analyzable matters, which the committee took to maximize recoveries for wide unsecured creditors.

Responsibilities included counseling the committee, participating successful meetings and negotiations, and “taking each indispensable enactment to support and sphere the interests of the committee.” In April, Voyager Digital was besides billed $1.1 million successful ineligible fees by its instrumentality steadfast Kirkland & Ellis. Attorneys from Celsius, 3AC, Voyager, and FTX are reportedly reaping important fiscal rewards arsenic a effect of these bankruptcy cases. John J. Ray III, CEO of FTX, is said to beryllium earning $1,300 hourly supervising his firm’s bankruptcy and restructuring.

Should cryptocurrency companies beryllium held accountable for the exorbitant ineligible and restructuring costs incurred during bankruptcy proceedings, oregon is it a indispensable terms to wage for the complexities of the industry? Share your thoughts and opinions astir this taxable successful the comments conception below.