Perhaps no saga illustrates the complexities and sobering realities of crypto regulation better than the ongoing story of Voyager, a cryptocurrency exchange in the throes of financial restructuring. The journey of the company’s rocky path has been meticulously charted by its legal team, McDermott Will & Emery, who recently billed the committee of unsecured creditors a startling $5.1 million for tasks completed from March to May. This latest invoice has ratcheted the total recompense charged to a staggering $16.4 million, a figure exceeding the $11.2 million initially budgeted for the process.
Beyond the numbers, this hefty bill delineates tasks demanding a hefty 970.9 hours dedicated to the intricate mechanics of plan and disclosure settlement. The job primarily pivoted around discussion of sale options, engaging with potential buyers, and scrutinizing objections exhibited by other stakeholders. The timeline bears the conspicuous void left by the collapse of a deal with prominent exchange, FTX, marking the previous period of significant attorney labor.
In addition to this gargantuan bill, Voyager further shoulders a $1.1 million invoice issued by another legal titan, Kirkland & Ellis. The firm was drafted to represent the interests of Voyager, in the unfortunate position of debtor. This spiraling vortex of charges paints a clear depiction of the struggle crypto entities face in a tumultuous regulatory landscape.
Historically, the 2022 market downturn coaxed a rash of bankruptcies into the spotlight, proving a veritable treasure trove for law firms. Giants like FTX and Celsius have been reported to shell out sums beyond $200 million and $50 million respectively on legal fees.
However, the shadowy underworld of these numbers reveals a grimmer perspective. Detractors argue that such exorbitant costs and drawn-out procedures gnaw at the reserves intended for creditors. As the legal expenses mount, it leaves fewer and fewer funds in circulation for those to whom the money is owed.
The unfolding saga of Voyager, peppered with million-dollar legal bills and dashed deals, symbolizes a startling wakeup call for regulators and enthusiasts alike. It begs the question, at what cost does the pursuit of legitimacy come in the crypto world? A question exchange creditors and the broader crypto community grapple with as they navigate the turbulent seas of cryptocurrency regulation.
Source: Coindesk
