New York-based law firm McDermott Will & Emery has filed a compensation claim of $5.1 million from the creditors of bankrupt crypto brokerage firm Voyager Digital. The firm’s bill covers legal services provided between March 1 and May 13, 2023. In a court filing on July 3, the law firm invoiced the fees to the ‘Official Committee of Unsecured Creditors.’ The court documents revealed that the firm charged an hourly rate of $1,026.76 for its services during the specified period.
The bill submitted by McDermott Will & Emery included various legal services rendered to Voyager. These services encompassed advising the committee on its responsibilities under bankruptcy rules, attending meetings, negotiating with debtors’ representatives and other involved parties, and preparing necessary motions, applications, orders, reports, and other relevant documents.
This marks the third and final bill from the law firm, bringing the total compensation to $16.48 million between July 5, 2022, and May 19, 2023. Out of this amount, $8.97 million has already been paid by the creditors. It is important to note that McDermott Will & Emery is not the sole legal service provider engaged by Voyager. Another legal adviser, Kirkland & Ellis, billed Voyager $1.1 million for legal fees in April.
Voyager Digital filed for bankruptcy in July 2022 amidst a crypto lending crisis that caused market contagion and led to the collapse of several established crypto firms, including Celsius and BlockFi. At the time of filing, Voyager disclosed liabilities ranging from $1 billion to $10 billion.
The case of Voyager is not unique, as other crypto firms have also faced substantial legal expenses due to prolonged bankruptcy proceedings. For instance, FTX, a prominent cryptocurrency exchange, received a bill of over $120 million in financial and legal advisory fees between February 1 and April 30, 2023.
The challenges faced by Voyager and other cryptocurrency companies underscore the complexities and financial strains within the industry. As regulatory frameworks continue to evolve, crypto firms must navigate legal hurdles and ensure compliance while managing their operations effectively.