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

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

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

Congratulations to Celsius lawyers and advisors who are on track to have now passed $140M in fees, at the expense of victims left behind by @Mashinsky‘s despicable $3B fraud. pic.twitter.com/PwYJ8JLwKO

— Cam Crews (@camcrews) March 20, 2023

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

According to one Twitter user, they were lied to by Celsius founder Alex Mashinsky, and 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 hefty fees 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 charge $2,000 until they are paid what they are owed.

So the lawyers get millions but I wonder what us small fry folks get?

— Chris (@browncoat1of1) December 29, 2022

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