Law Firms Cashing In on Crypto Bankruptcies, Raking in Over $700 Million in Fees
CryptoNewsTerminal Staff31 May, 2024
Law Firms Cashing In on Crypto Bankruptcies, Raking in Over $700 Million in Fees
The collapse of major players in the cryptocurrency industry has been a windfall for law firms handling the bankruptcies, with some firms raking in an estimated $700 million or more in fees. Sullivan & Cromwell and Kirkland & Ellis have been the biggest beneficiaries of the high-profile crypto bankruptcies. Sullivan & Cromwell attorneys and consultants working on the FTX bankruptcy case have been paid more than $500 million, while professionals assisting with the bankruptcy proceedings have billed the debtors (FTX) for $700 million in fees and expenses. Kirkland & Ellis, which is handling the bankruptcies of Celsius, Voyager, and BlockFi, is also said to have billed the debtors $76 million, $27 million, and $16 million, respectively. The fees paid to law firms in these bankruptcy cases have raised eyebrows, with some critics arguing that they are excessive and could hinder the recovery of funds for creditors. However, law firms argue that their fees are justified given the complex and time-consuming nature of these cases.
