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Creditors of the insolvent cryptocurrency lending service Voyager Digital will disburse over $5 million for the third interim fee period, which concluded in mid-May.
Overall, McDermott Will & Emery has billed the group of Voyager creditors approximately $16.5 million for its services over a span of less than a year.
Legal Expenses
McDermott Will & Emery, the legal firm representing the Official Committee of Unsecured Creditors in the bankruptcy proceedings of cryptocurrency platform Voyager Digital Holding Inc., has invoiced the creditors’ group $5.17 million for the third interim fee period from 1 March 2023 to 18 May 2023.
For the complete fee period from 22 July 2022 to 18 May 2023, the law firm has charged the creditors’ group $16.48 million.
Initially, $11.2 million was designated for payment to the law firm for its services. To date, the creditors’ group has disbursed $8.9 million. A significant portion of the bill—$1 million—was incurred for planning and disclosure settlement. This segment of the work involved discussions on sale options, meetings with potential buyers, and reviewing objections, primarily related to Voyager’s sale to FTX.
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Failed Deals
Following its bankruptcy filing, Voyager Digital was on the verge of being acquired on two occasions. In October, FTX secured the bid to purchase it for $1.4 billion, surpassing Binance in the competition. However, the creditors opposed the agreement due to a clause that granted immunity, or “broad releases,” from future bankruptcy litigation for senior Voyager executives. Subsequently, FTX encountered a liquidity crisis, leading it to file for bankruptcy.
After incurring substantial losses linked to its exposure to the Singapore-based hedge fund Three Arrows Capital (3AC), Voyager Digital filed for Chapter 11 bankruptcy in July 2022.
In April, Binance.US withdrew from a $1 billion agreement to acquire Voyager’s assets due to complications with local regulators.
“While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community,” stated Binance’s US affiliate.
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