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## [TL; DR]
Celsius earned a total of $120 million for representing Celsius, Core Scientific, BlockFi, and Voyager in their bankruptcy cases.

Celsius paid more than half of the $120 million as its case was more complex than those of Core Scientific, BlockFi, and Voyager.

As part of the restructuring process Celsius has offered a settlement to large account holders.

## Introduction 
Some of the legal proceedings of bankruptcy cases that occurred in 2022 and 2023 are still on-going. Most of the firms filed for chapter 11 bankruptcy while others went for chapter 7. For the sake of expediency most of these firms hired specialized law firms like Kirkland & Ellis to represent them. Nonetheless, most of these legal firms charge high fees.

In this case, we look at how much Kirkland & Ellis raked in for representing Celsius, Core Scientific, BlockFi and Voyager. We will also explore how these companies have proceeded with their different bankruptcy legal proceedings.

Recent news: [Compute North, A Bitcoin Mining Firm, Files For Chapter 11 Bankruptcy](https://www.gate.io/zh/blog_detail/1627/compute-north-perusahaan-penambangan-bitcoin-mengajukan-kebangkrutan-bab-11 "Compute North, A Bitcoin Mining Firm, Files For Chapter 11 Bankruptcy")

## Kirkland & Ellis Earn $120 Million in Celsius, Core Scientific, BlockFi and Voyager Cases
In the past two years some legal firms cashed in from representing crypto companies that declared voluntary bankruptcy. Some of these crypto companies filed for bankruptcy with the intention of restructuring while others aimed at winding up their businesses. 

The main reason why several crypto firms declared bankruptcy in crypto in 2022 was the crypto fall that occurred during the crypto winter. In addition, several crypto exchanges [entered Chapter 11 bankruptcy](https://www.gate.io/blog_detail/3299/bitmain-to-inject-dollar54-million-into-bankrupt-bitcoin-mining-firm-core-scientific "entered Chapter 11 bankruptcy") which exacerbated the dire situation in the sector.

Kirkland & Ellis is a large legal firm, with much expertise in representing bankrupt companies in the United States. Since 2022 it has been offering its legal service to [Celsius Network](https://www.gate.io/blog_detail/1212/what-is-celsius-network-cel-tradfi-and-defi-meet-and-recent-controversies "Celsius Network"), BlockFi and Voyager Digital [in their bankruptcy legal proceedings](https://www.gate.io/blog_detail/1339/celsius-filed-a-bankruptcy-claim-in-new-york "in their bankruptcy legal proceedings"). 

As per a [Bloomberg report](https://news.bloomberglaw.com/business-and-practice/kirkland-nets-120-million-in-celsius-blockfi-voyager-work "Bloomberg report"), Kirkland & Ellis earned more than $120 million in legal fees for representing the three companies. The report also stated that Kirkland & Ellis charges $1,995 per hour for the services it offered to the three crypto firms. Comparably, this is one of the highest rates in the industry. 

Roughly, each of these crypto firms might have paid around $3.3 million per month. Nevertheless, Kirkland & Ellis’ clients had no option as the complex nature of the crypto industry require specialized legal expertise in weighing the possible risks and rewards.

One interesting thing is that the charges the legal firms set for each individual case are approved by the bankruptcy court. It means that in the cases of <a href="/price/celsius-network-cel" target="_blank" class="blog_inner_link">Celsius Network</a>, BlockFi and Voyager Digital, the bankruptcy c[https://www.gate.io/learn/articles/what-is-vgx/560](https://www.gate.io/learn/articles/what-is-vgx/560)ourt approved the legal fee structures. 

Read also: [Celsius Network (CEL) Price Prediction 2024-2030](https://www.gate.io/price-prediction/celsius-network-cel "Celsius Network (CEL) Price Prediction 2024-2030")

More significantly, the fees from Celsius alone amount to $76 million which is far higher than that of [Voyager](https://www.gate.io/learn/articles/what-is-vgx/560 "Voyager") and [BlockFi cases](https://www.gate.io/blog_detail/1241/will-blockfi-be-the-next-to-fall "BlockFi cases"), which stand at $27 million and $16 million, respectively.

The Celsius case is quite complex since it involved allegations against Alex Mashinsky, its former CEO. However, Kirkland & Ellis successfully negotiated for a settlement as well as enabling Celsius to launch a creditor-owned Bitcoin mining operation when it exits bankruptcy. 

Read also: [SafeMoon Initiates Chapter 7 Bankruptcy, SFM Plummets by 42%](https://www.gate.io/blog_detail/3647/safemoon-bankruptcy "SafeMoon Initiates Chapter 7 Bankruptcy, SFM Plummets by 42%")

## Celsius Network Offers Settlement to Large Account holders
In another development, Celsius has made another breakthrough as it reached a settlement with its large account holders. The large account holders have been called upon to settle their financial obligations by 31 January 2024. 

This applies to the large account holders with Withdrawal Preference Exposure. In other words, the settlement applies to those who made large transfers within 90 days before the Petition Date, July 13, 2022. This condition is an important element of the Modified Joint Chapter 11 Plan of Reorganization.

In simple terms, this settlement applies to account holders who have an exposure that exceeds $100,000. All crypto investors who want to settle should submit their election form by January 25, 2024. They should also make their settlement payment by 31 January.  

On the other hand, the Celsius account holders with an exposure of less than $100,000 should not take any action. Nonetheless, those who fail to make the payment by 31 January will be liable for legal action from the Litigation Administrator. 

## BlockFi Exits Bankruptcy
BlockFi, which declared crypto bankruptcy in November 2022, has exited from bankruptcy. Now, it seeks to recover funds which FTX, Three Arrows Capital and other companies owe it. 

Also, the company confirms that it will continue to distribute crypto assets back to its customers. During the last quarter of 2023 BlockFi reconciled the assets which the clients claimed. Within the same period some customers were able to withdraw their assets. All they needed to do was to submit their withdrawal requests. 

## Bitcoin Rebound Eases Core Scientific’s Bankruptcy Reorganization 
Core Scientific, the crypto mining company, got a court approval to exit crypto bankruptcy and proceed with its restructuring process which reduces its debt by $400 million from its balance sheet. It will use that amount to repay its creditors. 

Thanks to the turnaround in the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a> the company can afford to pay its creditors. Through a press release, the company highlighted <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>’s recent price rise as a contributing factor to its financial stability.

[It posted](https://investors.corescientific.com/investors/news/news-details/2024/Core-Scientific-Inc.-Plan-of-Reorganization-Confirmed-by-Bankruptcy-Court/default.aspx "It posted"), “With demand for Bitcoin and high-value computers continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale.”

In a related development, the company has hinted that its shares may be re-listed by the end of January. Under the reorganization plan, Core Scientific’s shareholders will get 60% of its new equity. 

[In the press release Core Scientific said](https://investors.corescientific.com/investors/news/news-details/2024/Core-Scientific-Inc.-Plan-of-Reorganization-Confirmed-by-Bankruptcy-Court/default.aspx "In the press release Core Scientific said"), “Assuming the cash exercise of all applicable warrants, and the cash is used to pay down debt, the Company’s existing debt would be paid in full, a reduction of approximately $1 billion from its debt balance prior to the Plan.”

Also, [Adam Sullivan, Core Scientific CEO said](https://investors.corescientific.com/investors/news/news-details/2024/Core-Scientific-Inc.-Plan-of-Reorganization-Confirmed-by-Bankruptcy-Court/default.aspx "Adam Sullivan, Core Scientific CEO said"), "Today's plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success.” As noted, Core Scientific aims to strongly reposition itself by the beginning of February. 

## Conclusion 
2022’s crypto price fall brought many financial constraints among some crypto firms. Sadly, some of these crypto companies closed down while others declared bankruptcy with the aim of restructuring. Celsius, Core Scientific, BlockFi and Voyager are a few examples of crypto firms that declared bankruptcy in 2022. As a result, Kirkland & Ellis offered them legal services, but at a high cost.



<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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Kirkland & Ellis charged a total of $120 million for its legal service to Celsius, Core Scientific, BlockFi and Voyager, who declared bankruptcy in 2022.

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Crypto Bankruptcies: Kirkland & Ellis Secures $120 Million in Celsius, Core Scientific, BlockFi, Voyager Cases