An nameless Slashdot reader shared this report from the New York Instances:
The collapse in cryptocurrency costs final 12 months compelled a procession of main companies into chapter 11, triggering a authorities crackdown and erasing the financial savings of thousands and thousands of inexperienced buyers. However for a small group of company turnaround specialists, crypto’s implosion has grow to be a monetary bonanza.
Attorneys, accountants, consultants, cryptocurrency analysts and different professionals have racked up greater than $700 million in charges since final 12 months from the bankruptcies of 5 main crypto companies, together with the digital forex change FTX, in response to a New York Instances evaluation of courtroom data. That sum is prone to develop considerably because the circumstances unfold over the approaching months.
Giant charges are widespread in company bankruptcies, which require advanced and time-intensive authorized work to untangle. However within the crypto world, the mounting charges have sparked widespread outrage as a result of most of the individuals owed cash are novice merchants who misplaced their private financial savings, moderately than companies with the power to climate a monetary disaster. Each greenback in charges is deducted from the pool of funds that might be returned to collectors on the finish of the bankruptcies.
The charges are “exorbitant and ridiculous,” mentioned Daniel Frishberg, a 19-year-old investor who misplaced about $3,000 when the crypto firm Celsius Community filed for chapter final 12 months. “At each listening to, they’ve a military of individuals there, and most of them do not should be there. You do not want 20 individuals taking notes.”
