Creditors for bankrupt Voyager Digital billed $5.1M in legal fees

New York-based law company McDermott Will & & Emery applied for payment of $5.1 million from the financial institutions of insolvent crypto brokerage company Voyager Digital. The bill is for legal services used between March 1 and May 13, 2023. In a July 3 court filing, the law firm billed the legal fees to the “Official Committee of Unsecured Creditors.” The court documents exposed that the law practice charged a hourly rate of $1,026.76 for its services during the period.Summary of the final expense for Voyager Digital. Source:  cases.stretto.com The company noted a number of legal services it offered Voyager, including advising the committee in connection with its powers and responsibilities under the bankruptcy rules, working out and participating in meetings with the agents of the debtors and other parties in interest, preparing on behalf of the committee all essential motions, applications, answers, orders, reports, responds, reactions and documents, among others.This was the last and 3rd costs from the law office, taking its total compensation to$ 16.48 million in between July 5, 2022, and May 19, 2023, of which$ 8.97 million has actually already been paid by the creditors. McDermott Will & Emery is not the only legal service supplier to use its & services to Voyager. On June 28, legal adviser Kirkland & Ellis also billed Voyager for$ 1.1 million in legal costs for the month & of April. McDermott Will & Emery didnt instantly respond to Cointelegraphs demand for comments.Related: Voyager app set to reopen for customer withdrawals as quickly as June 20Voyager submitted for insolvency in July 2022 in the middle of a crypto financing crisis that caused market contagion and the collapse of numerous established crypto companies such as Celsius, BlockFi, and others. At the time of its bankruptcy filing, Voyager divulged liabilities from $1 billion to $10 billion. Apart from Voyager, multiple other crypto companies, including Celsius and FTX, have actually sustained large legal fees due to prolonged insolvency proceedings. FTX, for example, was billed over$ 120 million in financial and legal advisory costs in between Feb. 1 and April 30, 2023. Magazine: Huobi takes legal action against … Huobi? 3AC rises from ashes, Korea crypto contagion

Other Questions People Ask

What legal fees did creditors for bankrupt Voyager Digital incur?

Creditors for bankrupt Voyager Digital incurred a total of $5.1 million in legal fees billed by the law firm McDermott Will & Emery. This amount covers legal services provided between March 1 and May 13, 2023, and was submitted to the "Official Committee of Unsecured Creditors." The firm charged an hourly rate of $1,026.76 for its services during this period, contributing to a total compensation of $16.48 million since the bankruptcy filing. This directly relates to Creditors for bankrupt Voyager Digital billed $5.1M in legal fees in practical terms.

How did McDermott Will & Emery justify the $5.1M legal fees for Voyager Digital?

McDermott Will & Emery justified the $5.1 million legal fees by detailing various legal services rendered to Voyager Digital's creditors. These services included advising the committee on bankruptcy rules, negotiating with debtor agents, and preparing essential motions and documents. The law firm's extensive involvement in the bankruptcy proceedings reflects the complexity and demands of managing such a significant financial crisis.

What is the total amount billed by McDermott Will & Emery to Voyager Digital's creditors?

The total amount billed by McDermott Will & Emery to Voyager Digital's creditors has reached $16.48 million from July 5, 2022, to May 19, 2023. Of this total, $8.97 million has already been paid by the creditors. This billing includes three separate invoices, with the most recent being the $5.1 million for services rendered in early 2023.

What other legal firms have billed Voyager Digital during its bankruptcy proceedings?

In addition to McDermott Will & Emery, the legal firm Kirkland & Ellis also billed Voyager Digital for $1.1 million in legal costs for April 2023. This indicates that multiple legal service providers are involved in navigating the complexities of Voyager's bankruptcy case. The cumulative legal expenses reflect the ongoing challenges faced by various crypto companies during insolvency proceedings.

What were the circumstances leading to Voyager Digital's bankruptcy?

Voyager Digital filed for bankruptcy in July 2022 amid a broader crypto financing crisis that affected several major companies in the industry. The firm reported liabilities ranging from $1 billion to $10 billion at the time of its filing. This crisis not only impacted Voyager but also led to significant legal fees for other companies like Celsius and FTX, highlighting the widespread repercussions of the market downturn.