As a seasoned crypto investor with a fair share of ups and downs in this volatile market, I find it fascinating yet disheartening to see the astronomical fees being raked in by law firms during these challenging times for our beloved crypto space. It’s like attending a never-ending series of high-stakes poker games where the house always seems to win more than the players.
Four of the 22 law firms dealing with bankruptcies in the crypto space made $484 million.
A Bloomberg Law report spotlights substantial earnings law firms have garnered since 2022 due to their work on high-profile bankruptcy cases such as FTX, Celsius, Terraform Labs, Genesis, and others. These legal entities have amassed approximately $751 million by providing counsel during the Chapter 11 bankruptcies.
According to a recent report by Bloomberg Law, a team of 22 leading law firms have been handling seven bankruptcy cases triggered by the crypto market crash that started in 2022. They’ve received or requested payments amounting to approximately $751 million as of mid-August. Notably, FTX’s legal fees are the most substantial, with five different firms accumulating charges totaling $312 million for their services. However, it appears that this case is nearing its conclusion, as a confirmation hearing has been scheduled for October.
Among the 22 companies Bloomberg Law mentioned as earning $751 million collectively, four firms – Sullivan & Cromwell, Kirkland and Ellis, White & Case, and Cleary Gottlieb – accounted for a significant portion, contributing approximately 64% of the total earnings with $484 million.
As a crypto investor, I’ve noticed some impressive earnings among the legal teams involved in recent crypto-related cases. For instance, Sullivan & Cromwell, who represented FTX’s debtors, raked in an impressive $215 million. Kirkland and Ellis, working for lead debtors like BlockFi, Voyager, and Celsius, followed closely with earnings of approximately $120 million, with $75 million coming solely from the Celsius proceedings. White & Case, who represented Celsius creditors and the unsecured creditor committee of Genesis, also earned a substantial $75 million. Lastly, Cleary Gottlieb made $73 million as Genesis’ lead counsel. It’s fascinating to see how these legal firms have navigated the complexities of the crypto space and reaped significant rewards from their work.
Source: Bloomberg Law
High-Profile Proceedings Coming to an End
The majority of the ongoing bankruptcy cases are nearing their conclusion. For instance, FTX’s bankruptcy case will be finalized in October, Terraform Labs is set to have a confirmation hearing in September, Genesis completed its restructuring process in early August, and Celsius has managed to pay back at least two-thirds of its creditors.
“Despite the imminent resolution of cryptocurrency bankruptcies, the sector continues to be a bustling area for legal matters,” according to Bloomberg Law.
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2024-09-01 17:02