Beleaguered crypto lending platform Celsius Network has incurred more than $3 million in legal fees, according to a filing shared on Friday.
The bankruptcy proceedings, which have been costly for Celsius Network, is an understatement, and per the filing, law firm Kirkland and Ellis is charging the company the sum of $2.6 million in fees for representing it in its bankruptcy proceedings from July 13 and July 31.
The company was also charged the sum of $750,000 in fees by Akin Gump for its services between July 13 and August 31.
These massive legal fees give a peak into the costs being incurred by crypto companies that have gone bankrupt, including Voyager Digital, Babel Finance, Vauld Group, and Zipmex. While the industry is filled with these bankruptcy cases, Celsius Network stands out as it was the first firm to halt withdrawals on its platform.
Alex Mashinsky, the company’s founder and former CEO, and his team allegedly ran the company to bankruptcy, with the Wall Street Journal noting that the firm operated a higher risk profile than most traditional banks did.
At present, Celsius Network has been exploring avenues to repay its creditors following its bankruptcy with as many as $2.8 billion in crypto liabilities. For the company to have an amicable settlement where the restructuring or liquidation is favourable to the majority of its creditors, it will still need to incur the services of experts that can help navigate its restructuring process.
As a flagship bankrupt crypto lending firm, the company is neck deep in its proceedings, and according to reports, it may suffer as much as a $40 million deficit according to projections by Kirkland & Ellis.
The crypto winter has taken out many crypto giants, and what proponents in the space are now looking for now is how the affected companies will bankroll their bankruptcy proceedings with highly cushioned funds.
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