Legal Fees Soar: Voyager Creditors Hit with $5.1M Bill

Legal Fees Soar: Voyager Creditors Hit with $5.1M Bill

McDermott Will & Emery, a prominent law firm based in New York, has submitted a compensation claim of $5.1 million to the creditors of Voyager Digital, a bankrupt cryptocurrency brokerage firm. The requested amount covers the legal services provided by the firm during the period from March 1 to May 13, 2023.

According to court documents filed on July 3, McDermott Will & Emery directed the bill for its legal fees to the "Official Committee of Unsecured Creditors." The hourly rate charged by the law firm for their services during that time frame amounted to $1,026.76.

Summary of the final bill for Voyager Digital. Source: cases.stretto.com

In its itemized list of services, the firm detailed various legal assistance rendered to Voyager. This included advising the committee on matters related to its responsibilities and obligations under the bankruptcy regulations, participating in meetings, and negotiating with the debtors' representatives and other involved parties. 

Furthermore, McDermott Will & Emery took charge of preparing all necessary legal documents, such as motions, applications, orders, reports, replies, responses, and papers, on behalf of the committee.

This latest filing represents the third and final bill from McDermott Will & Emery. Consequently, the total compensation the law firm seeks reaches $16.48 million for the period spanning from July 5, 2022, to May 19, 2023. Of this amount, $8.97 million has already been paid by the creditors. It is worth noting that Kirkland & Ellis, another legal advisor, has also billed Voyager for $1.1 million in legal fees for the month of April.

Voyager initially filed for bankruptcy in July 2022 amidst a crisis in the crypto lending sector, which caused a ripple effect and the subsequent downfall of multiple established crypto firms, including Celsius and BlockFi, among others. At the time of its bankruptcy filing, Voyager disclosed liabilities ranging from $1 billion to $10 billion.

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