The projected $144 million in legal and consulting fees for cryptocurrency lender Celsius Network throughout its bankruptcy proceedings has drawn criticism from some in the industry.
Software engineer Cam Crews posted a spreadsheet containing the reported fees and anticipated costs that the bankrupt crypto lender is expected to pay on March 21. The data shows that roughly $102 million has already been lodged.
The tweet attracted reactions from a variety of members of the cryptocurrency industry. Some users vented their fury by drawing comparisons between the SVB collapse and the Celsius predicament.
A Twitter user said that after being misled by Celsius creator Alex Mashinsky, justice declared their guilt. The community member, however, is of the opinion that wealthy venture capital depositors at SVB had their money insured even though they were not.
Another resident of the community is of the opinion that the lawyers should be required to give “proof of work,” and they are wondering if there are any American organizations that can audit them.
Celsius struggles with investors
One forum member sarcastically joked that creditors starting their own law practice would be a solution to make them whole due to the high fees being paid to attorneys. The Twitter user speculates that they might be the ones to charge $2,000 up until they receive their due compensation.
Similar views were raised by community members on December 29 as celsius announced its intention to extend the deadline for claims. Some people thought it was a stalling strategy, while others made fun of the attorney costs and contrasted them to what “little individuals” would receive.