Crypto lender Celsius incurs more than $3 million in legal fees

Embattled crypto lender Celsius has incurred more than $3 million in legal fees as it moves through Chapter 11 bankruptcy proceedings. 

Between July 13 and July 31, law firm Kirkland and Ellis charged the crypto lender almost $2.6 million in fees as it represented Celsius in Chapter 11 proceedings, according to a document filed on Friday. Another legal representative, Akin Gump, charged almost $750,000 for its services between July 13 and August 31, according to a similar filing. So far, Celsius has incurred legal fees totaling more than $3 million. 

The Block contacted Celsius for comment but had not heard back by the time of publication. 

After pausing withdrawals and transfers in June amid turbulent market conditions, Celsius filed for Chapter 11 bankruptcy in July. Since then, it’s been working its way through a restructuring process and examining ways to pay creditors.

Later reports have revealed considerable financial difficulties with $2.8 billion in crypto liabilities and Kirkland & Ellis projecting that Celsius will be almost $40 million in the red by the close of October.

In September, the company was accused of using a Ponzi-like scheme by the Vermont Department of Financial Regulation, and this month it disclosed the names and trading history of its platform’s users in the latest legal filing. Such events have resulted in Celsius losing much of its senior leadership, with its CEO and co-founder stepping down from the company. 

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