New York-based law firm McDermott Will & Emery has submitted a compensation claim of $5.1 million to the creditors of Voyager Digital, a bankrupt crypto brokerage firm.
The bill covers legal services provided by the law firm from March 1 to May 13, 2023.
The law firm, in a court filing on July 3, directed the billing of its legal fees to the “Official Committee of Unsecured Creditors.”
According to the court documents, McDermott Will & Emery charged an hourly rate of $1,026.76 for the services rendered during the specified period.
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The bill presented by the law firm encompasses various legal services it offered to Voyager, including providing advice to the committee on its powers and responsibilities under the bankruptcy regulations, attending meetings, and negotiating with debtors’ representatives and other interested parties.
Additionally, the firm was responsible for preparing all the necessary legal documents on behalf of the committee.
This recent bill marks the third and final one from McDermott Will & Emery, with the total compensation amounting to $16.48 million between July 5, 2022, and May 19, 2023. Of this total, $8.97 million has already been paid by the creditors.
It is worth noting that McDermott Will & Emery is not the sole legal service provider for Voyager. On June 28, another legal advisor, Kirkland & Ellis, billed Voyager $1.1 million for legal fees incurred in April.
Despite the request for comments from Cointelegraph, McDermott Will & Emery has not yet provided a response.
Voyager Digital filed for bankruptcy in July 2022 amidst a crisis in the crypto lending sector, which resulted in market turmoil and the downfall of several well-established crypto firms such as Celsius and BlockFi.
At the time of filing for bankruptcy, Voyager disclosed liabilities ranging from $1 billion to $10 billion.
The bankruptcy proceedings have imposed substantial legal fees on various crypto firms, including Voyager.
For instance, FTX, another prominent player in the industry, was billed over $120 million in financial and legal advisory fees between February 1 and April 30, 2023.
This indicates the financial burden faced by crypto companies in navigating the complexities of bankruptcy cases and seeking professional legal guidance to handle their affairs.
Hong Kong is positioning itself as an attractive destination for businesses in the blockchain, cryptocurrency, and Web3 sectors, potentially drawing them away from the United States, according to industry experts.
The city has taken several steps in the past year to foster the development of Web3 and enable retail investment in cryptocurrencies, including the establishment of the Task Force on Promoting Web3 Development.
Yat Siu, co-founder of Web3 investment firm Animoca Brands, has been invited to be an advisor to the task force, which will engage directly with government officials and financial regulators.
Siu emphasized Hong Kong’s evolving attitude towards crypto and Web3, stating that the city is well-positioned to attract startups and established firms.
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In contrast, he noted that many US firms operate under a cloud of regulatory uncertainty, citing recent charges filed by the US Securities and Exchange Commission against Binance.US and Coinbase for alleged unregistered securities offerings.
Hong Kong has seized the opportunity to take a leadership role in driving Web3 development, while the US has seemingly hindered its potential to be a top destination for companies in the sector.
Previously, Hong Kong had maintained a distance from the cryptocurrency space, with restrictive policies only recently overturned after consultations with industry proponents.
Siu commended the government’s agility in adapting its stance towards the industry and its willingness to include numerous Web3 proponents in the task force.
The Web3 task force in Hong Kong is expected to be dynamic, with regular meetings involving various crypto, blockchain, and Web3 working groups.
Task force members have entered into a two-year agreement with the Hong Kong government to provide advice on fostering industry growth.
Siu envisions the task force playing a vital role in driving sector development by nurturing talent and promoting blockchain solutions in educational institutions.
Hong Kong’s efforts to cultivate the Web3 sector have yielded positive results.
Cyberport, a technology-focused hub, has attracted over 150 Web3 firms this year, and companies are reportedly investing substantial amounts, ranging from $2 million to $25 million, to acquire virtual asset service provider licenses in the city.
With its proactive approach, regulatory clarity, and support for innovation, Hong Kong is carving out a distinct advantage in the global landscape of blockchain, cryptocurrencies, and Web3, potentially luring businesses away from the US and positioning itself as a leading hub for these emerging technologies.
In a remarkable turn of events, a cryptocurrency trader has transformed a modest $900 investment into an astonishing $176,000 windfall through an intriguing meme-inspired digital currency called Pepe 2.0 ($PEPE2).
This cryptocurrency appears to be a spin-off of the well-known meme-inspired coin, $PEPE.
$PEPE itself draws inspiration from the infamous meme and cartoon character, Pepe the Frog, and was introduced to the market on April 17, 2023.
Despite concerns regarding the contract owner’s potential ability to manipulate transaction taxes and blacklist functions, $PEPE has experienced an extraordinary surge in its market value.
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It has even secured a place among the top 100 digital assets following listings on various centralized exchanges.
Previously, another fortunate cryptocurrency investor managed to convert a mere 0.125 ETH investment in $PEPE into an astounding $1.14 million in just a matter of days, capitalizing on the right timing.
Now, history appears to be repeating itself with $PEPE2, as an investor on the Ethereum ($ETH) network has swiftly turned $900 into $176,000 within a mere 24 hours.
This remarkable feat was accomplished through over 40 trades, with each trade involving 2 $ETH worth of the newly launched meme-inspired cryptocurrency.
The investor initially acquired 8.3 trillion $PEPE2 tokens on June 28 and sold them later when their value skyrocketed exponentially.
However, caution is advised as Bubblemaps, a data visualization platform, recently revealed that an early adopter, who holds a significant amount of Pepe 2.0, is beginning to offload their assets.
This development could potentially trigger a chain reaction, as this individual wields substantial influence over the asset’s price and possesses a wallet that is directly linked to the deployer.
It is worth noting that this is not the first instance of a trader achieving astounding returns by trading memecoins.
For instance, a trader known as a “meme lord” turned $30,000 worth of digital assets into approximately $450,000 over three years by being an early investor in several memecoins, including popular ones like Shiba Inu ($SHIB) and Pepe Coin ($PEPE).
While trading memecoins can be potentially lucrative, it also carries significant risks that should not be underestimated.
These tokens tend to exhibit high volatility, with their values capable of surging or crashing dramatically within short periods.
Additionally, they often lack the underlying technology or utility that supports more established cryptocurrencies.
Therefore, investors should exercise caution and conduct thorough research before venturing into the world of memecoins, considering both the potential rewards and risks associated with these speculative assets.
A group of crypto and blockchain advocates has published a report urging the Hong Kong government to introduce a stablecoin linked to the Hong Kong dollar, aiming to challenge the dominance of Tether and USD Coin.
The report, co-authored by prominent individuals in the financial innovation field, proposes the issuance of an HKDG (Hong Kong Dollar Government) stablecoin to bolster the government’s efforts in the digital economy.
The authors, including Wang Yang from the Hong Kong University of Science and Technology, Cai Wensheng, the founder of Meitu, Lei Zhibin, an honorary chair of the Hong Kong Blockchain Association, and doctoral student Wen Yizhou, argue that issuing a stablecoin pegged to the Hong Kong dollar would solidify the region’s leadership in the blockchain sector.
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They believe it would enhance transaction efficiency, reduce costs, improve payment systems, and strengthen Hong Kong’s fintech capabilities.
Additionally, they assert that a Hong Kong Dollar stablecoin would increase the efficiency and inclusiveness of the financial system, provide stability, security, and cross-border liquidity, supporting a broader range of financial innovations.
The authors criticize the government’s current strategy of encouraging private institutions to issue stablecoins pegged to the Hong Kong dollar as “too conservative” in comparison to its crypto and blockchain promotion goals.
The report highlights that Hong Kong’s foreign exchange reserves in March 2023 amounted to approximately $430 billion, surpassing the combined market capitalization of Tether and USD Coin, which stood at around $120 billion.
The proposed HKDG, backed by the government, is deemed to possess higher credibility and lower risk compared to existing stablecoins, particularly given concerns about the credibility of Tether and recent discounts experienced by USD Coin.
The authors outline several potential benefits of launching HKDG, including challenging the dominance of the US dollar, providing additional liquidity for government projects, and facilitating risk assessment by officials.
However, the report acknowledges potential risks, such as legal and regulatory challenges, international disputes related to illicit funding, and hacking incidents.
In June, the Hong Kong government established a task force to oversee the development of Web3.
The region has seen growing interest from over 80 digital asset and blockchain-related companies considering establishing a presence in Hong Kong, in addition to the already existing 800 fintech companies.
Overall, the report recommends the issuance of an HKDG stablecoin by the Hong Kong government to propel the region’s digital economy, enhance financial systems, and bolster its position as a leader in the blockchain sector.
Jinan, the capital city of China’s Shandong Province, has taken a significant step towards the widespread adoption of the country’s central bank digital currency (CBDC).
The city has introduced digital yuan payments on all its bus routes, encouraging residents to embrace this new payment method.
Initially, the city conducted a pilot program on two bus lines to test the feasibility of CBDC payments. Following the successful trial, Jinan has now implemented the digital yuan payment system across its entire bus network.
Local media outlet Shunwang-Jinan Daily reported that the city has upgraded its card readers and bus route software to accommodate the CBDC payments.
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To incentivize the use of the digital yuan, Jinan is offering fare discounts to passengers who opt for this payment method.
According to the announcement, passengers can enjoy up to two discounted rides per day and a maximum of six discounted rides per month when using the digital yuan.
This initiative in Jinan is part of a broader nationwide effort to promote the adoption of the digital yuan in China.
Another city, Changshu, recently announced that it would pay civil servant salaries with the CBDC starting from May. This move extends to personnel at all levels of public service, public institutions, and state-owned units.
In addition to bus rides and civil servant salaries, China has implemented its CBDC for the Belt and Road initiative and cross-border trades.
On April 24, the city of Xuzhou issued a plan to promote the use of the CBDC in cross-border trade. Xuzhou serves as a departure point for trains transporting goods to Europe.
In a related development, BNP Paribas, a French bank, has partnered with the Bank of China (BOC) to encourage the use of the digital yuan.
Through this collaboration, BNP Paribas’ corporate clients will have the opportunity to connect with BOC’s system, facilitating real-time transactions using the digital yuan.
The introduction of digital yuan payments on Jinan’s bus routes represents a significant milestone in the promotion of China’s CBDC.
By integrating the digital currency into everyday transactions and expanding its use across various sectors, China is steadily advancing towards a digital economy.
The Financial Conduct Authority (FCA) of the United Kingdom has made an announcement stating that all crypto asset firms targeting users in the country must adhere to its financial promotions regulations by October 2023.
In a series of letters dated July 4, the FCA outlined that beginning on October 8, companies operating in the UK will have four legal options to lawfully communicate promotions related to crypto assets.
These options include obtaining approval or communication from an authorized party, creating promotions through a business registered with the FCA, or ensuring that the promotion qualifies as exempt under the UK’s Financial Services and Markets Act.
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The FCA clarified that promotions encompass various forms such as websites, mobile apps, social media posts, and online advertisements.
It emphasized that these promotional activities, regardless of the company’s location, should not have a limited effect in the UK.
Jayson Probin, the crypto financial promotions lead at the FCA, warned in a LinkedIn post that non-compliance could result in criminal charges.
The FCA notice stated, “We will take robust action against persons illegally promoting to UK consumers.
This may include, but it is not limited to, placing firms on our warning list, requesting take-downs of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action.”
The FCA had initially announced the October deadline on June 8, urging crypto firms to adopt a marketing approach that allows customers a “cooling-off period” to consider the risks associated with digital asset investments.
Once firms submit the necessary registration information, the FCA estimated a processing time of up to three months to evaluate the applications.
Alongside complying with the marketing regime set by the regulator, companies must register with the FCA to engage in crypto asset activities within the United Kingdom.
As of now, the FCA has listed 42 registered crypto firms that meet its requirements, including Bitstamp, Revolt, MoonPay, and Galaxy Digital UK.
The meme-inspired cryptocurrency Shiba Inu ($SHIB) has experienced remarkable growth in recent months, with a surge in daily new addresses during the second quarter of this year.
Data from IntoTheBlock, a prominent cryptocurrency analytics firm, reveals that on June 27, the daily new addresses for Shiba Inu exceeded 4,000, marking an astounding 357% increase compared to the 877 new addresses recorded on May 21.
Additionally, Shiba Inu has witnessed a flurry of activity on its layer-2 scaling solution testnet, Shibarium.
The testnet, called Puppynet, recently achieved a significant milestone of 25 million transactions.
PuppyScan, a dedicated block explorer for Shiba Inu’s network, reports that Puppynet processes approximately 270,000 transactions per day, contributing to the overall growth of the ecosystem.
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Earlier this month, CryptoGlobe reported that Puppynet had surpassed 20 million transactions, with around 16 million wallet addresses involved in fund movement on the network.
Since then, the number of wallets on Puppynet has surpassed 17 million, indicating increasing interest and engagement within the Shiba Inu community.
Part of the surge in activity and interest can be attributed to a cryptic message shared by Shytoshi Kusama, the enigmatic lead developer of SHIB.
Kusama, who has played a pivotal role in advancing the development of Shiba Inu, posted a 19-second video clip on Twitter hinting at upcoming developments within the ecosystem.
Crypto analyst Austin Hilton delved into the developments surrounding the Shiba Inu ecosystem, including its associated tokens $BONE and $LEASH, in a recent YouTube video.
Hilton revealed his accumulation of the former token, shedding light on the growing interest among enthusiasts and investors.
Shibarium represents a significant milestone for the Shiba Inu ecosystem, as its native token currently operates on the Ethereum network.
While Ethereum is renowned for its high level of security and decentralization, it faces limitations in terms of scalability and transaction throughput.
The implementation of Shibarium addresses these concerns and paves the way for a more efficient and scalable infrastructure for the Shiba Inu ecosystem.
Overall, Shiba Inu’s explosive growth in daily new addresses and the milestone achieved by the Shibarium testnet highlight the increasing popularity and potential of this meme-inspired cryptocurrency.
Non-fungible tokens (NFTs) have been making waves globally in recent years, primarily in the realm of art. However, their potential extends far beyond digital collectibles. NFTs can represent ownership of real-world assets, act as collectibles, or serve as a representation of privilege.
While the art NFT bubble has somewhat maligned the reputation of these assets at the mainstream level, we are now beginning to see new and fascinating uses of the technology. The travel industry, in particular, has showcased immense potential in harnessing the power of NFTs. Companies like Arakis are exploring the potential of these digital assets to revolutionize the way we travel and experience travel.
A Closer Look at NFTs and Their Potential
Non-fungible tokens (NFTs) are continually revamping the concept of ownership. They help democratize access to valuable assets by enabling fractional ownership of various items or experiences. The decentralized nature of NFTs empowers individuals with full control over their assets by eliminating the need for intermediaries. This not only minimizes risks such as fraud or insolvency but also enhances transparency, as every transaction is recorded on the blockchain, a public ledger accessible to all.
NFTs can represent both digital and real-world assets, opening up new possibilities. The technology is reshaping the landscape by offering a secure, transparent, and democratic model, breaking down barriers and empowering individuals with full control over their assets. As we continue to explore its potential, it’s clear that NFTs are not just a trend; they are the future of ownership.
Transforming the Travel Industry
The potential of Non-Fungible Tokens (NFTs) in the travel industry is vast and largely untapped. In this regard, the Revenue Sharing Token (RST) model, pioneered by blockchain-based travel platform Arakis, stands to unlock a multitude of new use cases for NFTs. This innovative blueprint can be replicated across various industries, creating a universally accessible way for individuals to participate in profit-sharing without the need for substantial upfront capital.
Arakis’ model allows travelers to facilitate bookings directly with suppliers, while individuals can receive commissions on all orders made via the platform for the RSTs they own. This creates a digital marketplace for trading and reselling room bookings and memorabilia. Moreover, by purchasing an RST, individuals can earn a share of the profit each time someone books a room at a specific location through the Arakis platform.
Semil Vithani, founder of Arakis, believes that the future of travel could be significantly transformed by the integration of NFTs. Potential developments include the introduction of NFT passports, which could streamline check-ins and border control processes, and NFT-based loyalty programs, which could offer a more flexible and user-friendly rewards system.
Moreover, the concept of fractional ownership, facilitated by NFTs, could extend to high-value travel assets such as luxury vacation properties, private jets, or yacht charters. This would allow more people to access and enjoy these premium experiences by sharing the costs and benefits through NFT-based ownership structures. On the subject Vethani added:
“Arakis introduces a new way to participate in the travel industry. By owning RST, individuals can generate passive income while others are traveling, creating an innovative and rewarding experience for our users. Our platform introduces tradable rooms and loyalty points, elevating the travel experience while addressing the pain points of our customer and offering seamless journey experience with our one-click AI-powered itinerary booking.”
Semil Vithani, Founder of Arakis
The Future of NFTs and Travel
As we look to thefuture, the potential of NFTs in the travel industry is vast. From collectibles representing landmarks and cities to revenue-sharing tokens, the possibilities are endless. Arakis is at the forefront of this revolution, leveraging the power of blockchain technology to create a more transparent, rewarding, and enjoyable travel experience for everyone.
Vethani believes that as more and more people gravitate toward the use of such decentralized technologies, NFTs will continue to revolutionize several industries, including travel. “By providing digital tokens that represent rewards, points, or benefits we can create more efficient and seamless travel experiences for everyone on a global level,” he stated.
Therefore, as the tourism and travel sector continues to evolve, the integration of NFTs promises to bring about a new era of innovation and growth. With projects like Arakis leading the charge, the future of travel is set to become more transparent, equitable, and exciting. It’s not just about purchasing a product or service, but about participating in a new way of experiencing travel.”
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Ethereum Rallies, Looks To Breach Key Resistance Zone
Ethereum is showing a strong upward momentum as its price surges past $1,940 against the US Dollar.
The cryptocurrency has the potential to continue its upward trajectory if it manages to surpass the crucial resistance zone at $2,000.
Currently, Ethereum is steadily moving closer to the $2,000 zone, trading above $1,920 and the 100-hourly Simple Moving Average.
On the hourly chart of ETH/USD, there is a bullish trend line forming, indicating support near $1,945.
If the resistance at $2,000 is successfully breached in the near future, Ethereum could experience a surge of 5% to 8%.
Ethereum’s price recently found a base above the $1,850 support level and initiated a fresh upward movement, outperforming Bitcoin.
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It surpassed the $1,950 resistance zone, reaching a new multi-day high at $1,975 before consolidating its gains. Although there was a slight decline below $1,965, the price managed to find support.
The immediate resistance for Ethereum is currently near $1,975, followed by a major resistance level at $2,000. A close above $2,000 could potentially trigger a renewed surge, with the next resistance level around $2,050.
Further upward gains could propel the price towards the $2,120 mark, and even higher to the $2,200 resistance level.
However, if Ethereum fails to surpass the $1,975 or $2,000 resistance levels, a downside correction might occur.
In such a scenario, initial support can be found around the $1,950 level and the trend line zone.
The next significant support level lies near $1,930, which aligns with the 50% Fibonacci retracement level of the recent upward movement.
Additionally, the 100-hourly Simple Moving Average also provides support at this level.
Further downward movement could lead to a drop towards the $1,900 mark, and if the bearish sentiment persists, Ethereum may find support around $1,880.
As Ethereum continues to display positive price action, investors are closely watching its performance and assessing the potential for further gains.
McDermott Will & Emery, the legal firm responsible for representing Voyager’s committee of unsecured creditors, has issued a bill of $5.1 million for their services rendered between March and May.
This latest invoice contributes to a total compensation charge of $16.4 million, surpassing the initial budget of $11.2 million allocated for the restructuring process.
To date, the creditors have disbursed $8.9 million toward the billed compensation.
Among the notable billings from McDermott attorneys during this period, $1 million was charged for 970.9 hours of work on plan and disclosure settlement.
This particular task involved engaging in discussions about potential sale options with the Debtors, meeting potential buyers, and reviewing objections presented by other stakeholders.
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It is worth noting that in previous billing periods, considerable efforts were dedicated to a potential asset sale to FTX, a deal that ultimately fell through with the exchange’s bankruptcy.
Furthermore, in addition to the fees incurred by McDermott Will & Emery, Voyager, the debtor, has also paid $1.1 million to the law firm Kirkland & Ellis for their representation throughout this case.
The market downturn experienced in 2022 led to a surge in bankruptcy filings, which proved to be lucrative for law firms.
Notably, firms such as FTX and Celsius have spent over $200 million and $50 million, respectively, on legal fees.
Critics of this situation argue that these exorbitant costs and lengthy legal processes have a detrimental effect on the funds available to creditors.
As more money is allocated to legal fees, the amount recoverable by creditors diminishes.
In summary, McDermott Will & Emery has presented a bill of $5.1 million to Voyager’s committee of unsecured creditors for their services rendered between March and May.
This brings the total compensation charged to $16.4 million, exceeding the initial budget. Additional expenses incurred by Voyager include a $1.1 million payment to Kirkland & Ellis.
While the legal industry has profited from the surge in bankruptcies, critics contend that the substantial costs and protracted legal proceedings adversely impact creditors’ potential recoveries.