Voyager Digital received a hefty legal bill.
Voyager Digital, the bankrupt cryptocurrency brokerage firm, is set to pay a $1.1 million invoice to its legal advisor, Kirkland & Ellis.
The hefty bill comes as a consequence of the company's bankruptcy proceedings in April.
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Voyager's financial struggles have recently come into sharp focus, with the company's bankruptcy situation necessitating extensive legal support.
A closer look at the documents reveals that Kirkland & Ellis, a well-known law firm in the cryptocurrency sector, operated on a mixed hourly billing rate of $1,313.18, providing varied services during the month of April.
The total cost of legal advice from attorneys and paralegals exceeded $1.4 million, with some of the firm's top personnel charging over $2,000 an hour for their services.
The expertise of Kirkland & Ellis extends beyond Voyager, with the firm representing other crypto industry players like BlockFi and Celsius during their bankruptcy proceedings.
The bankruptcy plan for Voyager was officially greenlit by the US Bankruptcy Court for the Southern District of New York on May 17th, 2023. The approval came shortly after Binance.US terminated the deal to acquire $1 billion worth of Voyager's assets.
Voyager filed for Chapter 11 bankruptcy in July 2022, a move spurred by the crypto credit crisis' devastating blow to numerous lenders and brokers in the field.
However, Voyager is not the only crypto entity burdened by substantial fees during its bankruptcy journey. FTX, another firm grappling with bankruptcy, has also seen its financial and legal advisory expenses balloon to over $120 million from February 1st to April 30th.
As such, Voyager's situation serves as yet another cautionary tale in the volatile world of cryptocurrency trading and brokerage.
