Voyager must pay $1.1 million in legal fees for April

Bankrupt crypto brokerage Voyager Digital is obligated to pay $1.1 million to its legal counsel, Kirkland & Ellis, for fees and expenses associated with the company’s involvement in bankruptcy proceedings in April.

According According to available documents, the Kirkland & Ellis law firm applied a blended hourly billing rate of $1,313.18 for the provision of various services throughout April. Cumulative fees assessed for legal services provided by both attorneys and paralegals exceeded $1.4 million.

Some members in high positions in the law firm charged rates in excess of $2,000 per hour for their professional services.

Kirkland & Ellis is recognized for representing several cryptocurrency companies undergoing bankruptcy proceedings, with clients including BlockFi and Celsius.

Voyager’s bankruptcy plan was approved by the United States Bankruptcy Court for the Southern District of New York on May 17, 2023. A third bankruptcy plan was proposed on May 5 after Binance.US denied a plan to buy Voyager assets worth $1 billion. 25 April

In July 2022, Voyager began the process of filing for Chapter 11 bankruptcy protection due to the substantial impact of the crypto credit crisis, which has severely impacted many lenders and brokers within the industry. Under the previous leadership of Steve Ehrlich, Voyager was the first publicly traded company in Canada.

At the time of its bankruptcy filing, Voyager disclosed liabilities ranging from $1 billion to $10 billion, reflecting the extent of its financial obligations and the circumstances that led to the decision to seek bankruptcy protection.

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Voyager isn’t the only one facing hefty fees in its bankruptcy process. FTX, another company embroiled in a similar bankruptcy process, earned a large sum of over $120 million in financial and legal advisory fees during the period from February 1 to April 30.

Cointelegraph reached out to Voyager and the Kirkland & Ellis law firm for more information, but did not receive a response by the time of this publication.

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