The bankrupt crypto lender Celsius (CEL) has so far paid out more than $3m in legal fees, with one law firm alone responsible for the vast majority of the expense for just two weeks of work.
The total figure of over $3m was made up of close to $2.6m charged by law firm Kirkland and Ellis for work done during the two weeks between July 13 and July 31, as well as $750,000 charged by law firm Akin Gump, two recent documents filed with the court revealed.
The legal fees have been incurred as Celsius continues to work through bankruptcy protection proceedings under Chapter 11 of the US Bankruptcy Code.
Celsius first suspended withdrawals for customers in June of this year, after experiencing massive capital outflows during the turbulent market conditions at the time. One month later, the firm filed for bankruptcy protection.
Needless to say, the massive legal fees are likely unpopular among Celsius customers who are hoping to get at least some of their initial deposits back as a result of the court proceedings. So far, however, few details have emerged about how or when payments can be distributed to creditors.
In late September, news broke that Celsius CEO Alex Mashinsky had officially resigned from the company. However, Mashinsky still made it clear that he remains available for Celsius and its advisors to “achieve a successful reorganization.”