Tech

Celsius lawyer and advisor fees on track to reach $144M, community responds

03/21/2023
Bitcoin Ethereum News

Crypto lender Celsius Network’s lawyer and advisor fees amid its bankruptcy proceedings are projected to reach $144 million, triggering responses from members of the crypto community. 

In a March 21 tweet, software developer Cam Crews shared a spreadsheet compiling the reported fees and projected fees that the bankrupt crypto lender needs to pay. According to the data, almost $102 million has been filed so far. The developer also pointed out that some months were missing and estimated that there are around $42 million in fees to be paid and filed eventually.

The tweet garnered responses from various members of the crypto community, with some even comparing the situation with Celsius to the current Silicon Valley Bank (SVB) issue and some suggesting that creditors start a law firm themselves. 

A crypto community member expressed their frustration by comparing the Celsius situation to the SVB collapse. According to the Twitter user, they were lied to by Celsius founder Alex Mashinsky, then justice told them that they were at fault. Meanwhile, the community member believes that rich venture capital depositors at SVB had their money covered even though they weren’t insured.

Meanwhile, another community member believes that the lawyers should be compelled to provide “proof of work,” asking if there are organizations to audit them in the United States.

Related: Coinbase, Celsius and Paxos disclose funds in Signature Bank

Because of the large amounts of fees being given to lawyers, one community member sarcastically suggested that creditors making their own law firm may be a way to make them whole. According to the Twitter user, they could be the ones charging $2,000 until they are paid what they are owed.

On Dec. 29, community members expressed similar sentiments as Celsius expressed its intent to extend the deadline for claims. Some believed that it was only a delaying tactic while others took a jab at the lawyer fees and compared what “small folks” would get.