The crypto crisis has become a gold mine for lawyers: According to Bloomberg, 22 major U.S. law firms have received a whopping $751 million for handling the bankruptcies of seven crypto companies. That's not all! Three lawsuits are ongoing!
$35 Million Per Month? FTX, Genesis, and Terraform Labs
It all started with the collapse of the FTX exchange and its founder Sam Bankman-Fried in the fall of 2022. That's when legal fees began to skyrocket. By mid-2023, when the crypto crisis reached its peak, lawyers were paying more than $35 million per month. FTX has already earned five law firms more than $312 million! Celsius Network had to pay out about $155 million to four firms, and the Genesis investigation cost $97 million.
Sullivan & Cromwell: Earned $215 Million Dollars!
The New York firm Sullivan & Cromwell made the most money from crypto company bankruptcies. They received an impressive $215 million, of which $138 million came from FTX. This is not just big money, it is real mountains of gold!
World Record +$480M At a Time!
Despite such impressive sums, they did not become record-breaking. The most expensive legal precedent is still the Lehman Brothers bankruptcy case. The firm Weil Gotshal & Manges presented a bill for more than $480 million!
