Celsius

United

Bitcoin

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 Lack of cryptocurrency regulations have made the legal work on crypto bankruptcies more difficult and expensive, FTX lawyers said. 
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 The legal industry has emerged as a major winner amid cryptocurrency <a rel="noopener noreferrer nofollow" title="collapses" href="https://thebittimes.com/tag/collapses.html">collapses</a> like FTX and Celsius, generating <a rel="noopener noreferrer nofollow" title="hundreds" href="https://thebittimes.com/tag/hundreds.html">hundreds</a> of <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a>s of <a rel="noopener noreferrer nofollow" title="dollars" href="https://thebittimes.com/tag/dollars.html">dollars</a> for <a rel="noopener noreferrer nofollow" title="lawyers" href="https://thebittimes.com/tag/lawyers.html">lawyers</a>. 
 Lawyers, accountants, consultants, analysts and other professionals have collected at least $700 <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a> in fees from the bankruptcies of major crypto firms over the past year, according to a report and an <a rel="noopener noreferrer nofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a> by The New York Times. 
 The calculated amount includes the costs charged as part of the crypto bankruptcy cases of five crypto firms — FTX, Celsius Network, Voyager Digital, BlockFi and Genesis Global — between July 5, 2022, and July 31, 2023. The figure is likely to grow significantly as the cases unfold in the near future, with Sam Bankman Fried’s trial coming in October. 
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 <figcaption style="text-align: center;"> The fees charged in crypto bankruptcy cases. Source: The New York Times 
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 According to the data, the legal experts involved in the FTX case are the biggest winners of cryptocurrency bankruptcies, charging a total of $326 <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a>. The law firm Sullivan &amp; Cromwell, which is managing FTX’s bankruptcy, has reportedly charged over $110 <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a> in legal fees, in addition to $500,000 in expenses. 
 Andrew Dietderich reportedly noted that the costs are particularly driven by the lack of clear cryptocurrency regulations, which made the cases more complex and time-consuming. 
 Kirkland &amp; Ellis, which handles Celsius, Genesis and Voyager bankruptcies, has billed $101 million for its work, with $2.5 million in expenses, The New York Times analysts said. Alvarez &amp; Marsal, a turnaround management firm, has reportedly charged more than $125 million for its work on FTX, Celsius and Genesis. 
 Related: SEC v. Ripple: Attorneys leave SEC side, both groups add new lawyers 
 Some of the initial reports indicating that firms such as Sullivan &amp; Cromwell would reap a fortune from their crypto bankruptcy work surfaced in January 2023. The firm reportedly had more than 150 people working on the FTX case at the time, including 30 partners with rates exceeding $2,000 per hour. 
 Amid concerns over high legal fees, the United States bankruptcy court appointed Katherine Stadler as fee examiner for the FTX case. In June, Stadler reported that the team working on FTX had requested more than $200 million in fees since the November bankruptcy, stating that the fees were reasonable. 
 Sam “SBF” Bankman-Fried’s legal team is continuing to fight against the United States Department of Justice, asking the court on Sept. 1 to deny all recent requests by the authority. As previously reported by Cointelegraph, one of the DOJ’s requests included an appeal to ban all of SBF’s seven expert witnesses from testifying in court. Some of the witnesses could cost SBF up to $1,200 per hour to testify. 
 Magazine: Asia Express: Bitcoin miner gets life in prison, China offers bounties for crypto firms 
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Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/crypto-collapses-generate-hundreds-of-millions-of-dollars-for-lawyers-tbt61569.html">https://thebittimes.com/crypto-collapses-generate-hundreds-of-millions-of-dollars-for-lawyers-tbt61569.html</a>

Crypto collapses generate hundreds of millions of dollars for lawyers

TheBitTimes

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