TechFlow reported, according to The New York Times, that after the successive bankruptcies of cryptocurrency firms FTX, Voyager Digital, Genesis Global, Celsius Network, and BlockFi, professionals including law firms, accountants, consultants, and analysts have earned more than $700 million in fees. As these cases continue over the coming months, this figure could rise significantly.
The New York Times analyzed over 5,000 court documents and found that in the past year, two major law firms—Sullivan & Cromwell and Kirkland & Ellis—each earned more than $100 million in fees from handling the bankruptcy cases of FTX and three other crypto companies. In addition, these two firms also charged between $500,000 and $2.5 million in extra expense reimbursements.
The report also noted that aside from law firms, more than 50 startups specialized in analyzing crypto transactions, as well as accountants, consultants, and investment banks, have profited from these bankruptcies. As these cases proceed, professional service providers may earn even more in the coming months.
