In the last few months, the crypto trading world has been going through some definite growing pains. Due to concerns coming from governments worldwide, they have really started cracking down on crypto trading. Regulators have started putting pressure on major crypto industry players everywhere, including crypto brokers. Due to the lack of regulations until recently, the price for defence has been high. Due to the lack of regulations, cases are very complicated and take up a lot of professional time. FTX lawyers, for example, have said that doing all the legal legwork is difficult for these crypto companies. Such companies include FTX and Celsius. This is brand new territory. With all this going on, it is easy to ask, will crypto ever recover?
So, there does appear to be one winner from the current situation: the legal industry. The industry has made many hundreds of millions in the process. They have acquired as much as $700 million from these major crypto players, and maybe even more. Several crypto firms, including FTX, Celsius, BlockFi, Genesis Global, and Voyager Digital, have undergone bankruptcy. Some of the best crypto staking platforms are a part of this. The combination of all these bankruptcies at once has flooded such legal firms with cash. More such cases will likely come up in the following months, as regulators are not letting up. So, legal firms will likely be doing well.
The FTX case has been especially profitable. The lawyers that were involved in the suit managed to charge an astonishing amount, $326 million. Sullivan & Cromwell appear to be doing especially well, winning an astounding $101 million.
There were indicators that the FTX lawyers would profit considerably for a while now, since January 2023. They had been able to charge $2,000 for each hour they worked on the case. Combine this with the 150 individuals working on their case, and such a large profit is not surprising for the crypto brokers.
