According to recent reports, insolvent cryptocurrency lender Voyager Digital is expected to pay Kirkland & Ellis a sum of $1.1 million as fees to the law firm’s contributions to the company’s bankruptcy court case in April.
Voyager Billed Hourly Charge of $1,313
The available documents revealed that the legal firm Kirkland & Ellis adopted a combined hourly fee of $1,313.18 for the execution of a range of solutions throughout April. Over $1.4 million in total fees were charged for the legal services provided by legal staff.
On the top of these expenses, some of the officials of the law firm charged an hourly rate of over $2,000 for their expertise.
The Bankruptcy Process
Voyager Digital filed for Chapter 11 bankruptcy in July 2022, days after stopping withdrawals on its platform because the firm’s uncertainty caused it to be influenced significantly.
The firm was expected to be able to restructure its operations in an effort to offer value to all of its users according to the filing, which was submitted in the U.S. Bankruptcy Court for the Southern District of New York. On May 17, 2023, the court approved Voyager’s bankruptcy plan.
Employees to be Paid Timely
Markedly, at the time of filing, Voyager Digital stated it intends to continue paying its employees as usual despite ongoing reorganization efforts, a decision that contrasts sharply with other struggling crypto companies that have laid off employees, like BlockFi, Coinbase, and Gemini, among others.
Acquisition of Voyager by Binance.US
Binance.US announced in April that it will no longer buy assets from Voyager Digital. Before walking out of the agreement, Binance’s CEO said that his business was considering backing off because of rising regulatory scrutiny since it began developing relationships with Voyager in order to buy it.
In a court document on June 14, it was revealed that the Voyager app might be updated on June 15 to reflect the amount available for withdrawal and that the withdrawal period is scheduled from June 20 to July 5.