Recent developments in the bankruptcy cases of crypto firms Celsius, BlockFi and Voyager Digital have highlighted the legal prowess of Kirkland & Ellis. The law firm, renowned for its expertise in corporate restructuring, stands to earn a staggering $120 million as lead counsel in these high-profile cases.
The trajectory of these cases highlights the volatile nature of the cryptocurrency market.
Law firms profit from cryptocurrency-related bankruptcy cases
Kirkland & Ellis represented the three cryptocurrency exchanges, with partner Joshua Sussberg at the helm. Their involvement began in June 2022, a period marked by significant cryptocurrency losses.
The company’s final compensation request in the Celsius case alone amounted to $76 million, a figure that overshadows its earnings from the Voyager and BlockFi cases, which were $27 million and $16 million, respectively.
This financial gain for Kirkland & Ellis comes amid broader turmoil in the cryptocurrency industry. The Celsius case, particularly entangled because of an investigation into former CEO Alex Mashinsky, culminated in a court-approved exit from bankruptcy involving a Bitcoin mining operation.
Other major law firms, including White & Case and Latham & Watkins, have also filed requests for significant compensation for their roles in these cases.
Update of the Celsius network documents
Meanwhile, Celsius Network has extended the settlement opportunity to its large account holders, a crucial step in its restructuring process. This move aims to address “exposure to withdrawal preferences.”
This covers significant transfers made within 90 days before the petition date of July 13, 2022. Account holders with exposure greater than $100,000 are eligible for this agreement. It could likely have far-reaching implications for the distribution of funds to creditors.

Celsius Network Altcoin Holdings % change YoY. Source: Kaiko
On a more optimistic note, BlockFi has emerged from bankruptcy, signaling a potential turnaround. The company’s focus is now on recovering assets owed by FTX and Three Arrows Capital.
Overall, Kirkland & Ellis’ success highlights its status as a leader in corporate restructuring. It also reflects the complexities and challenges inherent in the cryptocurrency market.
To know more: Top 5 BlockFi Credit Card Alternatives in 2023