Recent reports indicate that the law firm Kirkland and Ellis charged Celsius network over $5.6 million as legal fees for August alone. The reports have sparked serious questions about the expenditure of this troubled firm.
Celsius incurs over $5.6 million in legal fees
According to recent reports, Celsius, a troubled crypto lending platform, just recently paid a legal fee of about $5.6 million. This bankrupt crypto lending platform hired a team of law firms to assist them with the ongoing bankruptcy case. Among the hired firms include Kirkland and Elis.
According to reports, the bankrupt lender is paying massive legal fees. In one of the documents filed in court, the firm Kirkland and Ellis released their second monthly fee statement. This monthly statement is for the period beginning August 1st to August 31st. According to the document, Kirkman and Ellis charged Celsius a fee of about $5.6 million for the services offered in just one month.
The legal fee controversy
Celsius legal fees have stirred controversy before. In October last month, there were reports that Celsius paid around $3 million for legal fees. This report arose after information indicating that the lender paid Kirkman and Ellis around $2.6 million for July and an additional $750k to the law firm Akin Gump.
As of October 16th, earlier reports indicated that the troubled lender had spent over $3 million in legal fees. However, recent reports suggest that things are much worse. The legal fees only for August stand at $5.6 million.
The recent information stirred many questions in social media concerning the state of Celsius. After seeing the $5.6 million post, one Reddit user said;
“And still can’t get out of chapter 11… Put them all on minimum wage, paid in CEL.”
Another person noted that the bankruptcy process is flawed, considering the expense of $5.6 million used to run a business that makes millions in monthly losses.
Other users accused the lawyers of greed, mentioning that they were dragging out the process to earn more. For August alone, if the lawyers worked throughout the month (over 720 hours), they earned close to $7.7k per hour.
On Twitter, one crypto enthusiast said, “The Celsius bankruptcy is costing more in legal fees than buying a bank! Can you imagine that?”
Many other investors are still questioning how much they will have to spend if the proceedings continue for another few months.
Is Celsius fraudulent?
“Celsius not being forced into liquidation immediately allowing them to continue to drain what little funds are left via lawyer fees and salaries is almost as big of a fraud as the original business.”