Voyager Digital creditors face $5.1M legal fee burden in bankruptcy case

McDermott Will & Emery, a prominent law firm based in New York, has submitted a request for compensation totaling $5.1 million from the creditors of bankrupt cryptocurrency brokerage firm Voyager Digital. The bill covers legal services provided by the firm between March 1 and May 13, 2023.

In a court filing on July 3, McDermott Will & Emery directed the billing to the “Official Committee of Unsecured Creditors.” According to the court documents, the law firm charged an hourly rate of $1,026.76 for the services rendered during the specified period.

The firm outlined a range of legal services it had provided to Voyager, including advising the committee on its powers and responsibilities under the bankruptcy rules, attending meetings, negotiating with debtor representatives and other relevant parties, and preparing all necessary legal documentation on behalf of the committee.

This recent filing marks the third and final bill submitted by McDermott Will & Emery, bringing the total compensation sought to $16.48 million for the period spanning from July 5, 2022, to May 19, 2023. Of this amount, creditors have already paid $8.97 million. It is worth noting that McDermott Will & Emery is not the sole legal service provider involved in Voyager’s case. On June 28, legal adviser Kirkland & Ellis also submitted a bill for $1.1 million in legal fees covering the month of April.

Voyager Digital filed for bankruptcy in July 2022 amidst a crypto lending crisis that caused market turmoil and the collapse of several well-established cryptocurrency firms, including Celsius and BlockFi. At the time of the bankruptcy filing, Voyager disclosed liabilities ranging from $1 billion to $10 billion.

Similar to Voyager, other crypto firms have also faced substantial legal expenses due to protracted bankruptcy proceedings. For instance, FTX, a prominent cryptocurrency exchange, incurred financial and legal advisory fees amounting to over $120 million between February 1 and April 30, 2023.

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