Legal Firms Reap Over $750 Million from Crypto Bankruptcies

Twenty-two law firms engaged in seven cryptocurrency company bankruptcies under Chapter 11 of the U.S. Code have requested or received fees totaling $751 million, according to Bloomberg Law.

Journalists analyzed court documents and reported figures as of mid-August. Leading the pack were Sullivan & Cromwell, Kirkland and Ellis, White & Case, and Cleary Gottlieb, which accounted for $484 million.

FTX’s bankruptcy manager, Sullivan & Cromwell, earned $215 million. Kirkland & Ellis billed the second-largest amount at $120 million, with clients including Voyager, BlockFi, and Celsius. The latter brought the firm its highest profit of over $75 million.

White & Case earned around $75 million working with Celsius creditors and assisting in the investigation of the platform’s former CEO, Alex Mashinsky.

Cleary Gottlieb requested nearly $73 million. The firm is the lead advisor for Genesis.

Bloomberg forecasts that all bankruptcies will conclude by the end of the year.

Earlier, FTX announced overwhelming creditor support for the updated exchange reorganization plan. The previous proposal faced criticism.

Back in August, the administrator of Celsius’s bankruptcy proceedings distributed $2.5 billion among 251,000 former clients.