While crypto investors faced significant losses during the wave of bankruptcies in 2022, law firms have profited substantially, earning a collective $751 million in fees from the Chapter 11 cases. As of August 2024, four major law firms—Sullivan & Cromwell, Kirkland & Ellis, White & Case, and Cleary Gottlieb—dominated the earnings, taking home $484 million, which represents 64% of the total fees requested and received.
Sullivan & Cromwell led the pack, raking in $215 million as debtor’s counsel for FTX, billing over $10 million per month until a fee reduction in February 2024. Kirkland & Ellis followed, charging $120 million, with its largest earnings coming from its work on Celsius, where it collected over $75 million.
White & Case earned $75 million for its involvement in the Genesis and Celsius bankruptcies, where it represented creditors and conducted investigations into Celsius’ former CEO, Alex Mashinsky. Cleary Gottlieb rounded out the top four with nearly $73 million, primarily from its role as lead counsel in the Genesis bankruptcy.
These legal fees highlight the significant costs associated with the ongoing crypto bankruptcy cases, including high-profile cases like FTX and Terraform Labs, both of which are nearing crucial hearings in the coming months. Meanwhile, Genesis has already completed its restructuring, compensating $4 billion to affected parties.