- The crypto community complains about the legal expenses Celsius is incurring.
- Recent reports revealed that the bankrupt firm incurred over $3 million in legal fees.
- A committee of creditors appointed an independent fee examiner to look at all professional invoices.
As the bankruptcy proceedings of the embattled crypto lender Celsius lingers, the crypto community is unhappy with the growing costs. A Twitter user recently cried out, saying, “Celsius, stop wasting our money with lawyers,” calling on the unsecured creditors’ committee to address their concerns.
Celsius’ Official Committee of Unsecured Creditors tweeted yesterday that they “recognize how expensive the bankruptcy process can be” and consequently supports the appointment of an “independent professional fee examiner” to look at all professional invoices.
However, the move did not appease the crypto community as most people saw it as another avenue to “waste” more money. People who reacted to the post suggested that there should be no more appointments since it costs more funds.
One investor says: “End this process now. Whatever is there, distribute. If there’s more to be found, more to investigate, continue that after, but whatever assets still exist, distribute to the creditors in kind now.”
Recent reports from multiple sources revealed that the bankrupt crypto firm had expended over $3 million in legal fees as it continues to work through the proceedings under Chapter 11 of the US Bankruptcy Code. Law firm Kirkland and Ellis alone charged Celsius $2.6 million for services it rendered for two weeks between July 13 and July 31.
Currently, Celsius Network is looking at ways to repay its debtors with up to $2.8 billion in cryptocurrency liabilities. Given its current predicament, the company may suffer as much as a $40 million deficit, according to law firm Kirkland & Ellis projections.
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