Law firm McDermott Will & Emery billed the official committee of creditors of bankrupt crypto broker Voyager Digital for $5.1 million in three months of work.
According to the document, the total amount of compensation to lawyers from July 2022 to May 2023 amounted to $16.48 million, of which Voyager has already paid off $8.97 million.
Court documents say another law firm, Kirkland & Ellis, has sought $28.46 million from Voyager and related debtors over the same period. The company has paid $23.38 million to date.
In April alone, Kirkland & Ellis demanded $1.12 million from the crypto broker in compensation for expenses and fees. The firm’s lawyers previously set aside $259.6 million for legal fees, administrative lawsuits and other “holds.”
On July 5, 2022, Voyager Digital filed for bankruptcy. The company indicated total liabilities in the range of $1 billion to $10 billion.
The broker is one of the lenders to hedge fund Three Arrows Capital. The latter was unable to repay the debt of 15,250 BTC and 350 million USDC, so Voyager Digital sent him a notice of default in June.
In December 2022, Binance.US offered the highest bid for Voyager’s assets at $1.02 billion. However, regulators, including the US Securities and Exchange Commission and the New York State Department of Financial Services, opposed the deal.
During the hearings on the case, representatives of the regulator said that the US division of Binance operates an unregistered securities exchange. The US Department of Justice also opposed. On March 28, 2023, the court suspended the asset sale process.
Recall that on May 4, Voyager Digital announced preparations for liquidation and payments to creditors “within a few weeks.” Payments are planned in fiat and cryptocurrency. The company’s clients will receive 36 cents for every dollar of assets.
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