McDermott Will & Emery, a New York-based law firm, has requested a compensation claim of $5.1 million from the creditors of Voyager Digital for the legal services it provided between March 1 and May 13, 2023, to the bankrupt crypto exchange.
The compensation claim was officially filed in court on July 3, 2033. According to the court documents, McDermott Will & Emery charged an hourly rate of $1,026.76 for the services provided during the specified period. The services the law firm provided to Voyager included advising the committee on their authority and responsibilities under the bankruptcy rules and engaging with representatives of the debtors and other involved parties. The law firm also noted that it played a crucial role in drafting all essential motions, applications, answers, orders, reports, replies, responses, and papers on behalf of the committee.
It is worth noting that McDermott Will & Emery is not the only legal counsel providing assistance to Voyager during its bankruptcy proceedings. Another prominent law firm, Kirkland & Ellis, has also invoiced the company, on June 28, 2023, for $1.1 million for its services in April 2023.
Voyager’s bankruptcy was a result of the crypto loan crisis that occurred in July 2022, which had far-reaching consequences for the cryptocurrency market. The crisis led to a market contagion and the collapse of several prominent cryptocurrency companies, including Celsius and BlockFi. Under the weight of these challenges, Voyager also was forced to file for bankruptcy. Its liabilities were estimated to be between $1 billion to $10 billion.
The massive legal expenses of Voyager’s bankruptcy proceedings are not an isolated incident in the cryptocurrency industry. Several other businesses in the sector, including Celsius and FTX, have also faced substantial legal expenses due to prolonged bankruptcy processes.
The crypto market’s current challenges and regulatory scrutiny highlight its complex and ever-evolving nature. As these companies grapple with financial distress and legal complexities, there is a need for a deeper understanding of the risks and vulnerabilities within the market to ensure its stability and future growth.
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