The bankrupt crypto broker Voyager Digital will pay $1.12 million to the law firm Kirkland & Ellis as reimbursement of expenses and fees for April.
According to the report, the law firm billed an hourly rate of $1,313.18 for all its services.
In total for the month the firm spent $1.41 million, seeking reimbursement of 80% of the costs. Earlier, Voyager’s lawyers had already reserved $259.6 million for court costs, administrative claims and other ‘withholdings’.
On July 5, 2022, Voyager Digital filed for bankruptcy. The company put total obligations in the range of $1 billion to $10 billion.
The broker is one of the creditors of hedge fund Three Arrows Capital. The latter failed to repay debt of 15,250 BTC and $350 million USDC, so in June Voyager Digital sent him a notice of default.
In September, the FTX, founded by Sam Bankman-Fried won the auction to sell the broker’s assets, bidding around $1.4 billion.
Subsequently, Voyager reached a preliminary agreement with the U.S. unit of the exchange. The deal was to return to clients 72% of the value of their assets.
After the November 11 filing by FTX Group bankruptcy filing Voyager Digital said it would restart the auction and was prepared to discuss terms with potential buyers.
In December 2022, Binance.US offered the highest bid for Voyager’s assets — $1.02 billion.
However, regulators, including the U.S. Securities and Exchange Commission (SEC) and the New York State Department of Financial Services, opposed the deal.
During hearings in the case, SEC representatives stated that the U.S. unit of Binance runs an unregistered securities exchange. The U.S. Department of Justice also opposed. On March 28, 2023, the court stopped the sale process.
In May, Voyager Digital said that it was preparing for liquidation and payments to creditors “within a few weeks.” Payments are planned in fiat and digital assets. Clients will receive 36 cents on the dollar of their assets.