Voyager Digital creditors’ lawyers to pocket $16.48M after the recent invoice

Voyager Digital creditors’ lawyers to pocket $16.48M after the recent invoice

Blockchain
July 4, 2023 by secret
110
In the third and final bill lawyers representing Voyager Digital creditors have billed $5.1 million. When all the invoices are fully paid, Voyager Digital creditors will have paid a total of $16.48 million to the lawyers. The legal charges will top the firm’s bankruptcy budget by $5.28 million from the initial $11.2 million. In the
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  • In the third and final bill lawyers representing Voyager Digital creditors have billed $5.1 million.
  • When all the invoices are fully paid, Voyager Digital creditors will have paid a total of $16.48 million to the lawyers.
  • The legal charges will top the firm’s bankruptcy budget by $5.28 million from the initial $11.2 million.

In the recent court filing, the creditors of bankrupt cryptocurrency brokerage company Voyager Digital have been billed $5.1 million by New York-based law firm McDermott Will & Emery. The firm is billing for services offered between March 1 and May 13, 2023.

The law firm submitted a court filing on July 3 billing the legal costs to the “Official Committee of Unsecured Creditors.” According to the filing, the law firm billed for its services at an hourly rate of $1,026.76.

In total, the law firm is charging for 5,332.6 hours of professional, semi-professional, and non-professional services, including advising the unsecured Voyager creditors committee. It also wants to be reimbursed $151,221 for its expenses.

How much have Voyager Digital creditors paid so far?         

McDermott Will & Emery law firm submitted its third and final bill, bringing its total compensation between July 5, 2022, and May 19, 2023, to $16.48 million, of which $8.97 million has already been paid by the creditors.

McDermott Will & Emery isn’t the only law firm that is willing to help Voyager, though. Legal counsel Kirkland & Ellis also sent Voyager a bill for $1.1 million in legal costs for the month of April on June 28.

Voyager Digital woes

Voyager Digital filed for Chapter 11 bankruptcy in July 2022, after the massive crypto meltdown that resulted from the collapse of Terra Luna. At the time, Voyager owed $620 million to the currently bankrupt crypto hedge fund Three Arrows Capital.

The bankruptcy court has since ordered Voyager to pay interim reimbursement to the professionals including its lawyers.

Voyager had agreed to FTX’s bid for its assets just before FTX went down and also filed for bankruptcy meaning the deal did not go through.

Voyager then agreed to sell its assets to Binance.US but Binance.US pulled out of the deal triggering the liquidation of Voyager. Binance.US has also been locked in a legal battle with the US Securities and Exchanges Commission (SEC) which recently sued it for violating the country’s securities laws.



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