Kirkland & Ellis, a global law firm heralded for its top-notch legal services, is expected to clear more than $120 million for its legal expertise rendered to three major cryptocurrency exchanges that underwent Chapter 11 filings amidst severe cryptocurrency losses in 2022.
The firm represented BlockFi Inc., Celsius Network LLC, and Voyager Digital Holdings Inc., which all approached bankruptcy courts to file their cases between June and November of 2022. The leading role of Kirkland’s representation in each of these cases was headed by the New York-based partner, Joshua Sussberg.
The firm’s final fee application collectively from these three cases, as lodged on Thursday in the Celsius Network proceeding, asked for a staggering $76 million. This amount surpasses the firm’s bills from the two other cases, which have already concluded. Specifically, Kirkland realized over $27 million from the Voyager engagement and $16 million from the BlockFi case.
These recent engagements in the world of cryptocurrency, an area teeming with modern and complex legal matters, have solidified Kirkland & Ellis’s status as a leader in corporate restructuring. Previous to these digital currency sagas, Kirkland also dominated in market share of major Chapter 11 filings in 2020, a year marked by the economic trials of the pandemic and widespread business closures. That year, the legal giant held over 40% of all such filings, which escalated to the busiest bankruptcy year since the Great Financial Crisis.
Pertaining to the Celsius case in particular, law firms, in total, have requested fees near $145 million. Celsius, experiencing steep financial decline, received court approval in November for its bankruptcy exit plan, which included initiating a creditor-appointed Bitcoin mining operation. The case involves interesting potential legal complexities given that the former CEO of Celsius, Alex Mashinsky, now faces federal criminal charges. He is accused of manipulating the company’s self-issued token and his trial is in the forthcoming months.
The indemnity issues brought up in these cases have provoked some disapproval from crypto investors affected by the situation. So far, the compensation amounts have been affirmed by the bankruptcy court.
Akin to Kirkland & Ellis, other firms that served in these bankruptcy proceedings also lodged their fee requests. These include White & Case, which represented unsecured creditors and is asking for over $50 million for their work, Latham & Watkins, special litigation counsel for Celsius, seeking $12.3 million, and Akin Gump Strauss Hauer & Feld, special litigation counsel to Celsius as well, demanding $6.1 million for its services.
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