Boost

Celsius

Skyrocketing

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/crypto-bankruptcies-boost-legal-earnings" data-wpel-link="internal" rel="noopener noreferrer nofollow">Crypto Bankruptcies Boost Legal Earnings</a><br></p>
<p style="text-align: justify">In recent years, notable bankruptcies in the cryptocurrency sector have led to a substantial surge in legal costs, generating significant revenue for major law firms. Sullivan &amp; Cromwell and Kirkland &amp; Ellis are among the firms that have collectively amassed over $700 million from these high-profile cases. This escalation in legal expenses underscores the financial mismanagement and inconsistencies prevalent in the crypto industry.</p>
<h2 id="why-are-legal-fees-skyrocketing-in-crypto">Why Are Legal Fees Skyrocketing in Crypto?</h2>
<p style="text-align: justify">The downfall of significant crypto entities such as FTX Trading Ltd, Genesis Global Capital, BlockFi, Celsius, and Voyager Digital emphasizes the volatility and inherent risks of the crypto market. These failures also highlight the enormous legal and administrative expenses involved in navigating complex financial restructurings. Sullivan &amp; Cromwell has played a pivotal role, especially in handling the intricate legal challenges posed by the FTX bankruptcy.</p>
<p style="text-align: justify">Initiated in November 2022, the FTX bankruptcy, triggered by an $8 billion deficit revelation, has proven to be a lucrative venture for Sullivan &amp; Cromwell. The firm, along with other consultants, has accumulated fees surpassing $500 million, contributing to a total fee claim exceeding $700 million.</p>
<h2 id="which-firms-benefited-most-from-crypto-bankruptcies">Which Firms Benefited Most from Crypto Bankruptcies?</h2>
<p style="text-align: justify">Despite reductions of some fee claims by up to 20%, the financial burden remains hefty. Sullivan &amp; Cromwell had $254 million of its $360 million bill approved, while Alvarez and Marsel earned $133 million in fees. Other firms like AlixPartners, Quinn Emanuel Urquhart &amp; Sullivan, Perella Weinberg Partners, and Landis Rath &amp; Cobb collectively claimed $57 million. FTX CEO John Ray III and RLKS Executive Solutions also billed significant amounts, with Ray charging $1,300 per hour, totaling $5.6 million, and RLKS billing $26 million.</p>
<p style="text-align: justify">The Official Committee of Unsecured Creditors incurred $81 million in fees and $1.5 million in expenses, while the Ad Hoc Committee’s fees stayed under $5 million. Kirkland &amp; Ellis emerged as another major beneficiary, earning over $120 million for their involvement in the Celsius, Voyager Digital, and BlockFi cases. These bankruptcies, filed for Chapter 11 during the 2022 crypto market downturn, resulted in substantial legal fees, with the Celsius case alone accounting for $76 million, and Voyager and BlockFi adding $27 million and $16 million, respectively.</p>
<h2 id="key-takeaways-for-crypto-stakeholders">Key Takeaways for Crypto Stakeholders</h2>
<ul>
 <li>Understanding the volatility and inherent risks associated with the crypto market is crucial for <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> and stakeholders.</li>
 <li>The high legal costs in crypto bankruptcies highlight the importance of stringent financial management and regulatory oversight.</li>
 <li>Firms specializing in crypto-related legal services can significantly benefit from the industry’s turmoil.</li>
 <li>Stakeholders should be aware of the potential financial burdens associated with legal and administrative fees in the event of bankruptcy.</li>
</ul>
<p style="text-align: justify">In conclusion, the surge in legal fees from high-profile crypto bankruptcies underscores the financial complexities and risks within the industry, emphasizing the need for robust financial oversight and management. These cases have not only highlighted the sector’s volatility but also created substantial revenue streams for law firms navigating these intricate proceedings.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/crypto-bankruptcies-boost-legal-earnings" data-wpel-link="internal" rel="noopener noreferrer nofollow">Crypto Bankruptcies Boost Legal Earnings</a></h5>

Crypto Bankruptcies Boost Legal Earnings

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