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Voyager Digital’s staggering $1.1M legal advisor bill exposed

Voyager

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TL;DR

  • Voyager Digital is expected to pay its legal advisor, Kirkland & Ellis, a substantial amount of $1.1 million for services rendered.
  • Kirkland & Ellis is known for representing various crypto companies that have faced bankruptcy, including BlockFi and Celsius. 
  • The total fees charged by attorneys and paralegals exceeded $1.4 million, with some of the top-ranking members of the firm commanding an hourly rate exceeding $2,000.

Voyager Digital, the brokerage firm that underwent a bankruptcy process in April, is expected to pay its legal advisor, Kirkland & Ellis, a substantial amount of $1.1 million for services rendered during that time. According to official documents, the law firm utilized a blended hourly billing rate of $1,313.18 for all the services provided throughout the month. The total fees charged by attorneys and paralegals exceeded $1.4 million, with some of the top-ranking members of the firm commanding an hourly rate exceeding $2,000.

Kirkland & Ellis is known for representing various crypto companies that have faced bankruptcy, including BlockFi and Celsius. Voyager Digital, once led by former E*Trade executive Steve Ehrlich, filed for Chapter 11 bankruptcy protection in July after being severely impacted by the crypto credit crisis, which resulted in the collapse of several lenders and brokers. At the time of filing for bankruptcy, Voyager, which was publicly traded in Canada, reported liabilities ranging from $1 billion to $10 billion.

Voyager’s situation is not unique, as other companies navigating through the bankruptcy process have also incurred substantial fees. As previously reported, FTX, a prominent cryptocurrency exchange, accrued over $120 million in financial and legal advisory fees between February 1 and April 30.

Voyager Digital bankruptcy

Voyager Digital’s decision to engage Kirkland & Ellis as its legal advisor highlights the complexity and challenges associated with navigating the bankruptcy process in the cryptocurrency industry. The significant fees charged by the law firm shed light on the high costs involved in securing experienced legal representation during such proceedings.

The bankruptcy filing by Voyager Digital came as a result of the crypto credit crisis, which had a profound impact on various lenders and brokers in the industry. The company, once touted as a rising star in the cryptocurrency brokerage space, faced substantial liabilities ranging from $1 billion to $10 billion at the time of its Chapter 11 filing. This staggering level of indebtedness necessitated a thorough and strategic approach to the bankruptcy process, which likely contributed to the substantial legal fees incurred.

Kirkland & Ellis, known for its expertise in handling complex bankruptcy cases, including those involving crypto companies, has emerged as a go-to firm in the industry. Its client roster boasts prominent players like BlockFi and Celsius, further solidifying its reputation as a trusted legal advisor in the crypto space. By enlisting Kirkland & Ellis, Voyager Digital likely sought the firm’s specialized knowledge and experience to navigate the intricacies of cryptocurrency-related bankruptcy proceedings successfully.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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