UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Citigroup Faces Lawsuit Over Alleged Sexual Harassment by Top Wealth Executive 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Panama Supreme Court Voids CK Hutchison Port Concessions, Raising Geopolitical and Trade Concerns 
Palantir Stock Jumps After Strong Q4 Earnings Beat and Upbeat 2026 Revenue Forecast 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Tesla Launches New Model Y Variant in the US Starting at $41,990 
Trump Administration Appeals Judge’s Order Limiting ICE Tactics in Minneapolis 
Qantas to Sell Jetstar Japan Stake as It Refocuses on Core Australian Operations 
CSPC Pharma and AstraZeneca Forge Multibillion-Dollar Partnership to Develop Long-Acting Peptide Drugs 
Supreme Court Signals Doubts Over Trump’s Bid to Fire Fed Governor Lisa Cook 
Saks Global to End Saks on Amazon Partnership Amid Bankruptcy Restructuring 
Asian Currencies Strengthen as Indian Rupee and Australian Dollar Rally 
Trump Threatens Aircraft Tariffs as U.S.-Canada Jet Certification Dispute Escalates 
Amid cryptocurrency downturns involving FTX and Celsius, the legal sector flourishes, raking in unprecedented revenues as lawyers navigate complex regulatory landscapes in high-profile bankruptcy cases.
A recent New York Times report and analysis reveal that lawyers, accountants, consultants, analysts, and other professionals have collected at least $700 million in fees from the bankruptcies of significant crypto firms within the past year. The figure encompasses the costs related to the crypto bankruptcy cases of FTX, Celsius Network, Voyager Digital, BlockFi, and Genesis Global between July 5, 2022, and July 31, 2023.
With the unfolding of these cases soon, this amount will likely expand significantly. Notably, the trial of Sam Bankman Fried is scheduled for October. The largest winners in the world of cryptocurrency bankruptcies are the legal experts involved in the FTX case.
Their total charges account for $326 million. Sullivan & Cromwell, the law firm responsible for managing FTX's bankruptcy, has reportedly billed over $110 million in legal fees, with an additional $500,000 in expenses.
According to Andrew Dietderich, the high costs can be attributed to the absence of clear cryptocurrency regulations, leading to increased complexity and time consumption. Kirkland & Ellis, the firm handling Celsius, Genesis, and Voyager bankruptcies, has billed $101 million for their services and $2.5 million in expenses. Alvarez & Marsal, a turnaround management firm, is reportedly charged over $125 million for their FTX, Celsius, and Genesis work.
Initial reports in January 2023 indicated that Sullivan & Cromwell would reap substantial profits from their involvement in crypto bankruptcy cases. At that time, the firm had more than 150 individuals dedicated to the FTX case, including 30 partners whose hourly rates exceeded $2,000.
To address concerns over these exorbitant fees, the United States bankruptcy court appointed Katherine Stadler as the fee examiner for the FTX case. In a June report, Stadler revealed that the FTX team had requested more than $200 million in fees since the November bankruptcy, deeming the charges reasonable.
Despite the increasing scrutiny, the legal industry thrives as cryptocurrencies face significant challenges. The lucrative nature of these cases has highlighted the immense financial opportunities available to legal professionals in this evolving sector.
Photo: Kanchanara/Unsplash
