• Cryptocurrency turmoil has created new opportunities for large law firms to earn significant fees from regulatory compliance and representation of distressed crypto businesses.
• Kirkland Ellis is the principal counsel for several high-profile bankruptcy cases, including BlockFi, Celsius Network, and Voyager Digital Ltd, which have generated hefty fees for the firm.
• Bloomberg Law estimates that Kirkland charges up to $1,995 per hour for the services of its associates, making it one of the highest billing rates in the sector.
The turbulent cryptocurrency market has created a lucrative opportunity for law firms. In recent months, the price of crypto assets has dropped, leading to the bankruptcy of several major cryptocurrency exchanges and hedge funds. This has created a new field of law for big law firms, as they can now offer their services to distressed crypto businesses and earn significant fees from regulatory compliance and representation.
Kirkland Ellis is one of the biggest beneficiaries of this new market. The firm is the principal counsel for several high-profile bankruptcy cases, including BlockFi, Celsius Network, and Voyager Digital Ltd. These cases have generated hefty fees for the firm, with Bloomberg Law estimating that the firm charges up to $1,995 per hour for the services of its associates, making it one of the highest billing rates in the sector. In each case, the business may have invoiced an average of $3.3 million in legal fees.
The potential for these types of fees has made cryptocurrency law a lucrative field for big law firms. Georgetown University law professor Adam Levitin commented on the situation, saying, „You’ve got to pay the gravedigger… these are complicated cases with a bunch of novel issues, and it shouldn’t be surprising that they are going to require a lot of attorney involvement.“
It’s clear that cryptocurrency law is a cash cow for big law firms. With the potential to earn millions of dollars in legal fees, the sector is sure to attract more attention in the coming years. As the cryptocurrency market continues to be volatile, law firms will be well-positioned to capitalize on the turmoil and represent clients who are in financial distress.
