Expensive remedy – Figures related to the Celsius bankruptcy continue to be released to the general public. After clients’ assets and losses were exposed, documents show that the cryptocurrency lending platform, which is already unable to pay its creditors, must now pay millions of dollars in legal fees.
Salty legal bills for a Celsius on the straw
According to October 14 filings with the bankruptcy court for the Southern District of New York, Celsius must already over $3 million legal fees to its attorneys and legal representative, in connection with the bankruptcy proceedings.
From July 13 to 31 of this year, law firm Kirkland and Ellis billed nearly $2.6 million for its services, compared to around $750,000 for legal representative Akin Gump over the same period.
Six- and seven-figure fees for legal professionals
The Kirkland and Ellis filing states that the firm is seeking payment of $2,495,320.40 in fees. This amount should be $3,119,150.50, but the company has made a 20% holdback. To these costs are added “actual and necessary expenses” of $75,002.27, payable by Celsius. The crypto lending platform thus owes a total of $2,570,322.67 to Kirkland and Ellis.
The document filed by Akin Gump also gives details of the amount of the invoice, which Celsius will have to pay. The fees of the legal representative amount to $873,396.00. The invoice shows that Akin Gump made a 20% holdback on it, bringing that amount down to $698,716.80. The expenses incurred and billed amounted to $43,181.76. The crypto lending platform thus owes a total of $741,898.56.
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A first deadline, millions added to the billions of debts of Celsius
The legal representative specifies in his filing that objections relating to these costs must be filed with the court and served on the parties, no later than October 28, 2022 at 12:00 p.m. (Eastern time in effect). In the absence of such an approach, Akin Gump requests payment of 80% of the costs, and all of the expenses.
These 3 million dollars are thus added to the debts of 2.8 billion dollars in cryptocurrencies, which the platform must pay to its other creditors.
While Celsius is no longer worth anything, the company must therefore still bear heavy additional legal burdens until the end of this bankruptcy procedure.
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