Posted by • Voyager Digital is mandated to pay $1.1 million in legal advisory fees to Kirkland & Ellis for services related to their ongoing bankruptcy proceedings.
• Kirkland & Ellis is renowned for representing various cryptocurrency firms during their bankruptcy proceedings, such as BlockFi and Celsius.
• Voyager filed for Chapter 11 bankruptcy protection in July 2022 due to the considerable repercussions of the crypto credit crisis.
Voyager Digital Bankruptcy Proceedings
Voyager Digital, a cryptocurrency brokerage presently dealing with bankruptcy, is mandated to disburse $1.1 million in legal advisory fees to the law firm Kirkland & Ellis, in relation to its ongoing bankruptcy proceedings. Documents show that Kirkland & Ellis adopted a combined hourly charge of $1,313.18 for various services rendered through April, resulting in an amount exceeding $1.4 million. Prominent individuals within the law firm incurred an hourly charge that topped $2,000 for their specialized services.
Kirkland & Ellis Representation
Kirkland & Ellis is renowned for their representation of multiple cryptocurrency firms during their bankruptcy proceedings, with their client list including names like BlockFi and Celsius . The bankruptcy proposal of Voyager was sanctioned by the United States Bankruptcy Court for the Southern District of New York on May 17th 2023 after Binance withdrew from purchasing assets back on April 25th .
Impact Of Crypto Credit Crisis
Voyager sought protection under Chapter 11 bankruptcy due to the considerable repercussions of the crypto credit crisis that had adversely affected several lenders and brokers within the space. At the time Voyager filed for bankruptcy it revealed liabilities between $1 billion up to $10 billion which demonstrated how serious this issue was becoming .
Former CEO Steve Ehrlich
Under former CEO Steve Ehrlich Voyager had been a publicly listed firm in Canada at one point however he was later replaced by Bill Janeway who became interim CEO while they attempted to negotiate more favourable terms with creditors .
Conclusion
Legal services can be quite costly especially when dealing with complex cases like cryptocurrency bankruptcies as highlighted by Kirkland & Elllis’s billing of over $ 1 million dollars worth of service charges alone . They are not alone though as many other businesses have faced similar if not worse financial issues due to effects brought on by crypto credit crisis and it goes without saying that these should not be taken lightly or ignored altogether .