The totals include fees that a bankruptcy judge has formally approved as well as some that are awaiting approval and could be reduced.Īmong the biggest winners from the five cases are two major law firms. To tally the overall fees, the Times analyzed more than 5,000 pages of billing statements and other court documents from the bankruptcies of the crypto firms FTX, Celsius Network, Voyager Digital, BlockFi and Genesis Global.
∺t every hearing, they have an army of people there, and most of them dont need to be there. The fees are exorbitant and ridiculous, said Daniel Frishberg, a 19-year-old investor who lost about $3,000 when the crypto company Celsius Network filed for bankruptcy last year. Every dollar in fees is deducted from the pool of funds that will be returned to creditors at the end of the bankruptcies. But in the crypto world, the mounting fees have sparked widespread outrage because many of the people owed money are amateur traders who lost their personal savings, rather than corporations with the ability to weather a financial crisis. Large fees are common in corporate bankruptcies, which require complex and time-intensive legal work to untangle. That sum is likely to grow significantly as the cases unfold over the coming months.
Lawyers, accountants, consultants, cryptocurrency analysts and other professionals have racked up more than $700 million in fees since last year from the bankruptcies of five major crypto firms, including the digital currency exchange FTX, according to a New York Times analysis of court records. The collapse in cryptocurrency prices last year forced a procession of major firms into bankruptcy, trigging a government crackdown and erasing the savings of millions of inexperienced investors.īut for a small group of corporate turnaround specialists, cryptos implosion has become a financial bonanza.
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