According to Bloomberg, Kirkland & Ellis, the world’s highest-grossing law firm, stands to earn over $120 million in legal fees from representing three major cryptocurrency companies that filed for bankruptcy in 2022.
The prestigious law firm served as lead counsel for BlockFi, Celsius Network, and Voyager Digital when the crypto exchanges entered Chapter 11 bankruptcy amidst plunging digital asset prices.
According to final fee applications filed in court, Kirkland & Ellis will receive $76 million for guiding Celsius through a contentious restructuring, over $27 million for advising Voyager, and $16 million for counseling BlockFi.
The hefty bills outpaced those submitted by other top-tier law firms White & Case and Latham & Watkins which also worked on the cases. Crypto investors and industry observers have criticized the enormous legal fees as excessive. However, bankruptcy judges have so far approved the amounts, lauding Kirkland for its expertise in the novel field of crypto bankruptcy.
The Celsius engagement was especially complex given allegations of misconduct against its former CEO Alex Mashinsky. Kirkland & Ellis partners played a key role in negotiating a settlement allowing Celsius to launch a creditor-owned Bitcoin mining operation upon exiting bankruptcy.
Also Read: Celsius Transfers $125M in Ether to Exchanges for Repay
