Kiškis, Mindaugas
A icle
Celsius clawbacks agains EU consume s: A eal-wo ld es
o EU law on online consume con ac s
In e ne Policy Re iew
P o ided in Coope a ion wi h:
Alexande on Humbold Ins i u e o In e ne and Socie y (HIIG), Be lin
Sugges ed Ci a ion: Kiškis, Mindaugas (2025) : Celsius clawbacks agains EU consume s: A eal-wo ld
es o EU law on online consume con ac s, In e ne Policy Re iew, ISSN 2197-6775, Alexande on
Humbold Ins i u e o In e ne and Socie y, Be lin, Vol. 14, Iss. 3, pp. 1-20,
h ps://doi.o g/10.14763/2025.3.2013
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Volume 14 |
Celsius clawbacks agains EU consume s: A
eal-wo ld es o EU law on online
consume con ac s
Mindaugas Kiškis Mykolas Rome is Uni e si y
DOI: h ps://doi.o g/10.14763/2025.3.2013
Published: 7 July 2025
Recei ed: 11 Sep embe 2024 Accep ed: 3 Ma ch 2025
Funding: The au ho s did no ecei e any unding o his esea ch.
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ha e in luenced he ex .
Licence: This is an open-access a icle dis ibu ed unde he e ms o he C ea i e
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Copy igh emains wi h he au ho (s).
Ci a ion: Kiškis, M. (2025). Celsius clawbacks agains EU consume s: A eal-wo ld es
o EU law on online consume con ac s. In e ne Policy Re iew, 14(3). h ps://doi.o g/
10.14763/2025.3.2013
Keywo ds: Celsius ne wo k, Clawbacks, Consume p o ec ion, Ju isdic ion, Un ai
con ac e ms
Abs ac : Celsius Ne wo k was a c yp o lending gian managing nea ly USD 12 billion and
agg essi ely cou ing EU c yp o en husias s. Mo e han wo yea s a e i en e ed bank up cy, many
o me clien s eg e he day hey signed up wi h he ailed pla o m. The Celsius clawback lawsui s
in he US agains EU consume s p esen signi ican legal challenges ha es he limi s o EU
consume p o ec ion laws in c oss-bo de digi al inance cases. This a icle explo es he de ences
a ailable o EU consume s, ocusing on he ju isdic ional and subs an i e law ules se o h by he
B ussels I (Recas ) and Rome I Regula ions, alongside he EU's s ingen p o ec ions agains un ai
con ac ual e ms. Despi e Celsius' e o s o impose US law and ju isdic ion on i s EU cus ome s,
he a icle a gues ha hese claims a e legally unjus i ied. While such clawbacks cause s ess and
po en ial ha m, including he isk o de aul judgmen s, EU law p o ides s ong de ences ha
should p eclude any a emp o ecognise and en o ce hese judgmen s wi hin he EU. The a icle
also add esses b oade issues such as ex a e i o ial ju isdic ion, he applica ion o Ac io
Pauliana agains consume s, and due p ocess conce ns in c oss-bo de legal ac ions. I concludes
wi h ecommenda ions o clea e EU public guidance on consume clawbacks and sugges s
di ec ions o u u e policy and egula o y ac ion.
Issue 3
In oduc ion
Celsius Ne wo k (Celsius) was one o he la ges c yp o lending pla o ms ha a
i s p ime had almos USD 12 billion in asse s unde managemen (B owne,
Kha pal, 2022). Celsius began wi h he p omise o a global blockchain inance pla -
o m, p esen ing i sel as a blockchain bank and allowing use s o ea n yield on
deposi s o hei digi al asse s. In he end, i u ned ou o be one o he bigges
Ponzi schemes, a inancial aud (SEC, 2023), and a con inuing inancial and legal
nigh ma e o many Celsius cus ome s. As o he ime o w i ing o me Celsius
managemen a e unde ial o secu i ies manipula ion and aud.
On he e e o Celsius's collapse, housands o cus ome s did no wai o Celsius o
publicly admi i s oubles and wi hd ew hei asse s in he mon hs leading up o
he eeze o ope a ions. Some ac ed based on ci cula ing umou s, bu many wi h-
d ew o pe sonal, legi ima e, and bona ide easons – some comple ely un ela ed
o Celsius, such as la ge pu chases, heal h expenses, o amily e en expendi u es.
The e had been no indica ions o any oul play o bad ai h on he pa o Celsius's
cus ome s who wi hd ew hei unds du ing he un-up o Celsius's collapse. Ne -
e heless, due o obscu e p o isions o US bank up cy law, housands o such cus-
ome s, among hem consume s in he EU, ha e now become en angled in he Cel-
sius bank up cy and ace unce ain p ospec s o de ending hemsel es agains
clawback lawsui s iled by he Celsius es a e (Block aine , 2024).
This si ua ion aises no el and undamen al ques ions abou he in e play be ween
he EU consume con ac law and he global na u e o online inancial se ices,
which ha e ne e be o e eme ged on such a scale. I especially highligh s he en-
sions be ween US and EU legal amewo ks ega ding he p o ec ion o online con-
sume s. Such ensions a e well known and well esea ched, ye un il now, hey
ha e la gely been ea ed as in e es ing academic exe cise o subjec o compa a-
i e law s udy (Zeng, 2018; Hö nle, 2021; Zhen, 2022), a he han a p ac ical ma -
e . The Celsius clawback claims, howe e , p esen a e y eal si ua ion a ec ing
he li es o hund eds o EU consume s, many o whom know li le o no hing
abou he signi ican di e ences be ween US and EU consume law bu now ace
majo inancial conce n and complex in e na ional legal liabili y.
The o e all isks posed by he Celsius collapse we e emphasised as one o he mo-
i a ions o he EU o egula e digi al asse s and adop he Regula ion (EU) 2023/
1114 on Ma ke s in C yp o-Asse s (MiCA) (see MiCA Reci al 4), which ook e ec 30
Decembe 2024. MiCA egula ion may hope ully p e en unsc upulous ope a o s
like Celsius om conduc ing business in he EU in he u u e; howe e , i does no
2 In e ne Policy Re iew 14(3) | 2025
add ess he speci ic ques ions a issue in his a icle. I also o e s no consola ion
o he hund eds o EU consume s a ec ed by Celsius's clawback ac ions. Disap-
poin ingly, he clawback isks and key issues we e no add essed in he Eu opean
Pa liamen ECON Commi ee S udy on “Remaining egula o y challenges in digi al
inance and c yp o-asse s a e MiCA” (A e MiCA S udy, 2023). To cla i y hese is-
sues, he basic consume con ac ules a e mos ele an and need o be e-exam-
ined in speci ic con ex .
The legal essence o he Celsius clawback cases lies in he con lic o laws –
speci ically, he ques ion o applicable law and ju isdic ion. Celsius cases p esen a
clash be ween he US legal sys em, cha ac e ised by i s b oad ju isdic ional each
and asse i e judicial p ac ices, and he mo e p o ec i e, consume - iendly legal
en i onmen o he EU (Hö nle, 2021, pp. 30-32). The a ec ed Celsius EU con-
sume s a e caugh be ween hese wo powe s and ace highly complex legal ques-
ions. This a icle ocuses on he issues o he cu en li iga ion agains he EU
cus ome s (consume s) o Celsius1, speci ically on he applicabili y o EU consume
law and ju isdic ion ules o such cus ome s (consume s). The analysis aims o
iden i y and examine he legal de ences a ailable o EU consume s agains such
c oss-bo de legal claims and agg essi e legal s a egies employed by he Celsius
es a e unde US law.
The b oade implica ions o his analysis ex end beyond he immedia e conce ns
o Celsius's EU cus ome s. They ouch upon he g owing ex a e i o ial ambi ions
o na ional legal sys ems, o which he EU i sel is no s ange (Celes e & Fabb ini,
2021, pp. 10-11). In a wo ld whe e inancial and o he online se ices a e inc eas-
ingly digi al and bo de less, he ou come o he Celsius clawback li iga ion will
ha e signi ican implica ions o such ex a e i o ial ju isdic ion claims (D ewes &
Ki k, 2024). E en wi h he in oduc ion o he MiCA Regula ion, he isk o claw-
backs agains EU consume s in o eign ju isdic ions is no elimina ed, and he e-
1. Celsius cus ome s we e bo h companies and indi iduals. Analysis in his a icle ocuses only on he
EU indi iduals who we e caugh up as Celsius cus ome s. F om he poin o iew o he EU law
such indi iduals a e deemed consume s. The EU consume law (Di ec i es o Un ai Con ac Te ms
93/13/EEC, Consume Righ s 2011/83/EU, Consume C edi 2008/48/EU, e c.) use i ually he
same de ini ion o he “consume ”, de ining i as any na u al pe son ac ing o pu poses which a e
ou side his ade, business, c a o p o ession. The e is no mone a y o ansac ional h esh-
old—only a pu pose-o - he-con ac es . This unde s anding was a i med by he CJEU in C-208/18
Pe ucho á, whe e he CJEU was asked whe he an ac i e FOREX ade —classi ied by he b oke as
a e ail clien bu mani es ly sophis ica ed—could s ill ely on he B ussels I bis consume ju isdic-
ion ules. CJEU held ha inancial sophis ica ion, high ade olumes, o e en ea ning a li ing om
ading do no au oma ically s ip a na u al pe son o “consume ” s a us. The decisi e c i e ia is
whe he he con ac se es ha pe son’s p i a e needs o hei p o essional ac i i y. Impo an and
ele an o no e ha CJEU conside ed he “consume ” s a us in con ex o he B ussels I (Recas )
Regula ion.
3 Kiškis
o e, addi ional cla i y on hese si ua ions is necessa y.
The i s pa o his a icle examines he Celsius clawback claims and hei con-
ex . The second pa analyses he applicabili y o he B ussels I (Recas ) Regula-
ion (12 Decembe 2012 Regula ion (EU) 1215/2012 on ju isdic ion and he ecog-
ni ion and en o cemen o judgmen s in ci il and comme cial ma e s ( ecas )),
Rome I Regula ion (17 June 2008 Regula ion (EC) No 593/2008 on he law applica-
ble o con ac ual obliga ions), and o he EU ules pe aining o Celsius's clawback
cases agains EU consume s. The hi d pa ocuses on he ecogni ion and en-
o cemen aspec s and legal de ences a ailable du ing i . As i was no ed, he
analysis assumes ha Celsius cus ome s in he EU, who a e na u al pe sons, a e
consume s. I is also assumed ha he a ec ed EU na ionals a e no esiden s o
he US ju isdic ion, i.e. hey a e no EU ci izens who a e US G een Ca d holde s o
ha e dual EU/US ci izenship, as such pe sons may be amenable o he US cou ju-
isdic ion. The a icle does no in es iga e mul iple special legal de ences ha
may be ele an , e.g. he law ulness o claiming he p esen alue o asse s ha
we e wi hd awn and po en ially liquida ed in 2021, bu may ha e nominally ap-
p ecia ed since hen. No does i add ess he si ua ion o EU legal en i ies ha
may be subjec o Celsius es a e clawback lawsui s.
1. Legal ela ionship be ween Celsius and hei
cus ome s
The elephan in he oom o any c oss-bo de con ac o dispu e is he ques ion
o applicable law and ju isdic ion. Online se ices a e globally accessible o con-
sume s wi h li le ega d o hei physical loca ion. Mo eo e , online companies
equen ly a ge cus ome s ac oss bo de s, ei he di ec ly eaching ou o he con-
sume s online o indi ec ly h ough a ious in e media ies (Chen, 2022).
In he EU, a o eign business is gene ally subjec o he ju isdic ion o a consume ’s
coun y o domicile and he law o he consume ’s habi ual esidence, p o ided he
business has speci ically a ge ed he consume ’s home coun y, and he consume
con ac alls wi hin he scope o such a ge ing ac i i ies unde he EU B ussels I
Recas and Rome I Regula ions. These a e EU public law manda es ha canno be
wai ed by con ac and a e designed o p o ec EU consume s om a bi a y con-
ac ual e ms imposed by online se ice p o ide s. The pu pose o hese manda es
is o p o ec consume s om being d agged in o o eign cou s unde o eign laws
(Hö nle, 2021, pp. 331–368).
Howe e , in his speci ic si ua ion, he e a e se e al egula o y ca ea s pe aining
4 In e ne Policy Re iew 14(3) | 2025
o he subjec ma e o he Celsius con ac s (con ac s on ans e o digi al as-
se s) and he na u e o he lawsui s (clawbacks esul ing om Celsius bank up cy
p oceedings). I is c ucial o assess whe he he gene al p inciples o he a o e-
men ioned EU public law s ill apply because, as men ioned in he in oduc ion, he
ules go e ning consume con ac ju isdic ion in he US and he EU could no be
mo e di e en .
1.1. Celsius ela ionship wi h he EU consume s
Celsius was a global online inance pla o m a emp ing o each consume s
wo ldwide, and especially in he US and EMEA (Eu ope, he Middle Eas and A ica)
egions (Celsius Whi epape , n.d.-a). Ope a ing as a US company, Celsius ac i ely
a ge ed EU consume s by all a ailable means. This was done di ec ly by making
i s se ices a ailable o EU consume s and pu ing signi ican e o in o onboa d-
ing hem, and indi ec ly h ough ad e ising and local pa ne s, such as he Ge -
man in ech company Nu i GmbH, which i sel a ge ed consume s ac oss he EU
and wen bank up due o i s pa ne ship wi h Celsius (Reu e s, 2022).
The main se ice o e ed by Celsius was Celsius Ea n. Onboa ded cus ome s could
ans e hei c yp ocu ency asse s o Celsius in exchange o weekly in e es . Cel-
sius s a ed i would lend hose c yp ocu ency asse s o o he ma ke playe s o
gene a e yield, hus ac ing as a kind o c yp o bank. Celsius accoun holde s could
elec o ecei e weekly ewa ds paymen s (o in e es ) in he ans e ed c yp ocu -
ency (i.e., in-kind) o in CEL oken, which had highe e u n in e es a es. The e-
la ionship be ween Celsius Ea n use s and Celsius was go e ned by Celsius’s Te ms
o Use.
Cus ome s who ag eed o he Te ms o Use en e ed in o a con ac ual a angemen
wi h Celsius Ne wo k L d, a Uni ed Kingdom en i y. Howe e , in July 2021, he
Te ms o Use we e upda ed such ha he coun e pa y o all cus ome s became
Celsius Ne wo k LLC, a Delawa e en i y. Mo eo e , he go e ning law o he Te ms
o Use was changed o New Yo k law, and he ju isdic ion clause on esol ing he
dispu es was also changed. Acco ding o Sec ion 33 o he las e sion o he
Te ms o Use ( 8) “dispu es a ising ou o , o ela ed o, you Celsius Accoun o e-
la ionship wi h Celsius mus be b ough exclusi ely in he compe en cou s loca -
ed in New Yo k, NY and he US Dis ic Cou loca ed in he Bo ough o Manha an.”
All cus ome s we e equi ed o accep hese upda es o he Te ms o Use h ough a
push no i ica ion o con inue o access Celsius’s pla o m. All “use - acing” ac i i-
ies, including all wi hd awal eques s ela ed o he Ea n p oduc , we e housed in
he wo kspace hos ed by he Celsius US en i y o cus ome accoun s2.
5 Kiškis
F om a o mal pe spec i e, o almos a yea be o e iling o bank up cy all Celsius
cus ome s who used he Celsius Ea n se ice we e con ac ing wi h a US en i y in
connec ion wi h he asse s ha hey ans e ed o and wi hd ew om Celsius’s
pla o m.
I is impo an o no e ha he Te ms o Use we e no localised o mee EU con-
sume law equi emen s. Fo example, hey we e a ailable only in English, we e
no p o ided in he na ional languages o a ious EU coun ies, and did no ac-
coun o he domes ic laws o he cus ome s' domiciles. Ne e heless, Celsius ac-
i ely a ge ed EU consume s in hei ma ke ing, and acili a ed hei con ac ing.
A c ucial aspec o his a ge ing was Celsius's onboa ding p ocess, which equi ed
all cus ome s o con i m hei iden i y, add ess, and sou ces o unds—commonly
e e ed o as he "Know You Cus ome " (KYC) p ocess, which is essen ial o com-
pliance wi h an i-money launde ing, coun e - e o is inancing, and o he inancial
se ices egula ions. Celsius also used a ious Eu ope based KYC se ice p o ide s
(Celsius KYC, (n.d.-a)) o localise and ailo he KYC p ocess, ensu ing i could
ecognise EU iden i y documen s and o he EU consume in o ma ion.
1.2. Celsius es a e clawback lawsui s
Gene ally, acco ding o he US Sup eme Cou pe sonal-ju isdic ion s anda d o
he US cou s o ha e ju isdic ion o e non- esiden indi iduals, such indi iduals
shall ha e con ac s wi h he o um s a e in a way ha he “main enance o he sui
does no o end ` adi ional no ions o ai play and subs an ial jus ice'” (In e na-
ional Shoe Co. . Washing on, 326 U.S. 310, 316 (1945)). Also, he indi idual should
ha e such a deg ee o “minimum con ac ” wi h he o um ha he migh expec he
necessi y o li iga ing he e. “Minimum con ac s” a e usually es ablished i he de-
endan “pu pose ully a ailed” himsel o he laws o he o um seeking ju isdic ion
by doing business wi hin i , which may be sa is ied by he de endan ag eeing o a
con ac ual clause (Niesel, 2019).
Celsius bank up cy p oceedings a e handled by he US Bank up cy Cou o he
Sou he n Dis ic o New Yo k. Acco ding o he US bank up cy law, he cou p e-
siding o e he bank up cy also has a gene al ju isdic ion o e clawback lawsui s
in bank up cy p oceedings (28 U.S.C. § 157(b)(2)(F)). No e ha clawback lawsui s
a e a o m o Ac io Pauliana, which in i sel is no a bank up cy p oceeding. Also,
Celsius bank up cy om he ou se was a so-called Chap e 11 p oceeding, which
would be an equi alen o es uc u ing p oceedings in he EU, and no a winding-
2. C lawsui s agains consume s Sec ions 22; all lawsui s a e iden ical and a e public in he Celsius
Cou Docke (Celsius Cou Docke , n.d.-a.).
6 In e ne Policy Re iew 14(3) | 2025
up and liquida ion p oceeding – he sale o a deb o 's asse s and he dis ibu ion
o he p oceeds o c edi o s, which in he US is e e ed o as he Chap e 7 p o-
ceeding (LoPucki & Dohe y, 2017). Inad e en ly, his may ha e a c ucial ole in
de e mining he applicabili y o he EU ju isdic ion o clawback lawsui s agains
EU consume s.
All clawback lawsui s iled by Celsius es a e a e public in he Celsius Cou Docke
(Celsius Cou Docke , n.d.-a.) and p o ide a ull insigh in o applicable law and ju-
isdic ion a gumen s made by he Celsius es a e. Celsius es a e claims ha he US
Bank up cy Cou has ju isdic ion o e de endan s, which a e no US esiden s.
This is claimed o be based on he minimum con ac s wi h he Uni ed S a es in
connec ion wi h he claims asse ed; Bank up cy Rules 7004(d) and ( ) and New
Yo k Ci il P ac ice Law & Rules § 302 because, Celsius cus ome s pu pose ully
a ailed hemsel es o he laws o he US and he S a e o New Yo k by, among o h-
e hings, doing o ansac ing business in he US and in he S a e o New Yo k
which gi es ise and/o ela es o he claims a issue. Fu he mo e, ju isdic ion is
held by i ue o he indi iduals ha ing en e ed in o ag eemen s wi h Celsius ha
o a ious con ac s and ma e s designa ed he S a e o New Yo k law as he go -
e ning law and as he o um s a e o dispu e esolu ion. Celsius cus ome s who
ha e also iled a p oo o claim in Celsius bank up cy p oceedings may ha e addi-
ionally subjec ed hemsel es o he New Yo k law as he go e ning law and New
Yo k as he o um s a e o dispu e esolu ion.
On he su ace, he clawback ju isdic ion and enue claims mee he said gene al
“minimum con ac s” equi emen . Howe e , he lawsui s comple ely igno e he
consume na u e o he ela ionship be ween Celsius and i s indi idual non-US
cus ome s, as well as he ci cums ances in which ha ela ionship was es ab-
lished. E en US legal schola s acknowledge ha in consume con ac s, he pa ies
lack equal ba gaining powe . Acco dingly, he s onge pa y will dic a e he e ms
o he con ac , including any choice o o um o choice o law clause; also, a a
minimum summoning non-US esiden consume s o he US li iga ion aises e y
se ious conce ns abou he ul ilmen o he due p ocess equi emen s (E on,
2018), which will be also add essed u he below in discussing ecogni ion and
en o cemen ma e s.
Clawback lawsui s ail o add ess any de enses ha may be a ailable o non-US
Celsius cus ome s agains he asse ed ju isdic ion and enue. Thus, he a gu-
men s ad anced in hose lawsui s in suppo o ha ju isdic ion and enue should
be assessed e y c i ically. I is no ce ain, howe e , ha he bank up cy specialis
judge p esiding o e he Celsius bank up cy li iga ion will asce ain he complexi y
7 Kiškis
o he ma e and he con lic o laws a issue. The cou may choose o ollow a
pa h o leas esis ance – a nominal p ocedu e o issuing de aul judgemen s
agains cus ome s who do no espond o he clawback lawsui s.
Clawback lawsui s we e iled agains Celsius cus ome s, who wi hd ew hei digi al
asse s wo h a leas USD 100,000 a he da e o wi hd awal om Celsius pla o m
in 90 days leading o he ini ia ion o he Celsius bank up cy p oceedings (Busi-
nesswise, 2024). No e ha USD 100,000 is an a bi a y h eshold, which was es-
ablished in he Celsius es uc u ing plan and likely ep esen s a pu ely p agma ic
h eshold, whe e a lowe amoun would no jus i y he po en ial adminis a i e
and li iga ion cos s.
A lo o wi hd awals we e in he o iginal asse s (e.g. BTC o ETC), ha a e highly
ola ile and i is no en i ely ce ain how he clawback h eshold alue was calcu-
la ed. Ye he clawback amoun s we e calcula ed based on he asse ed ma ke
alue o he wi hd awn asse s as o 14 June 2024 (Celsius Open Le e , n.d.-a.). This
may be a a he impo an ci cums ance in speci ic si ua ions, po en ially leading
o a dismissal o he clawback lawsui s. I is no analysed u he in his a icle,
due o ocus on ma e s o applicable law and ju isdic ion.
Based on he US ules (11 US Code § 547) o he s a u e o limi a ions on claw-
backs Celsius es a e had h ee yea s o ile such claims, and iled app oxima ely
5,000 such claims by 13 July 2024 in he US Bank up cy Cou o he Sou he n Dis-
ic o New Yo k. Hund eds o claims we e iled agains he consume s based in
he EU as epo ed in online g oups o Celsius consume s (Reddi , n.d.-a.).
2. Pe inen EU law
2.1. EU ju isdic ion ules pe inen o Celsius clawback claims
The B ussels I (Recas ) is he manda o y disciple o he ea lie 1968 B ussels Con-
en ion on ju isdic ion and he en o cemen o judgmen s in ci il and comme cial
ma e s. B ussels I (Recas ) se s o h he gene al p inciples ha he ules o ju is-
dic ion mus be highly p edic able and ounded on he p inciple ha ju isdic ion is
gene ally based on he de endan 's domicile and ju isdic ion mus always be a ail-
able on his g ound sa e in a ew well-de ined si ua ions in which he subjec -ma -
e o he li iga ion o he au onomy o he pa ies wa an s a di e en linking ac-
o (Reci al 11). In ela ion o consume con ac s, he weake pa y should be p o-
ec ed by ules o ju isdic ion mo e a ou able o his in e es s han he gene al
ules p o ide o (Reci al 13).
8 In e ne Policy Re iew 14(3) | 2025
dan . The p oblem lies in he ac ha all no i ica ions in he Celsius bank up cy
p oceedings we e sen ia email o he add esses used by he pa ies in 2021,
a he han h ough con en ional channels, like egula mail in pape o m. While
he au ho canno commen on whe he his complies wi h US bank up cy p oce-
du al ules, i aises signi ican conce ns wi h espec o in e na ional pa ies, pa -
icula ly consume s. All he consume law conside a ions discussed in he p e ious
sec ion a e ele an he e. Mo eo e , i is likely ha key p ocedu al documen s—in-
cluding se lemen o e s—should ha e been se ed acco ding o he ules o p i-
a e in e na ional law, such as he 1965 Hague Con en ion on he Se ice o Judi-
cial and Ex ajudicial Documen s, o which bo h he EU and he US a e pa ies. The
Hague p ocess, howe e , is leng hy and cos ly, which may explain why he Celsius
es a e op ed no o ollow i .
A ec ed Celsius cus ome s disco e ed he de elopmen s o Celsius bank up cy ei-
he h ough email—assuming hey ecei ed and checked i —o ia online commu-
ni ies o Celsius ic ims, such as he Celsius g oup on Reddi (Reddi , n.d.-a.). Many
Celsius cus ome s on Reddi epo ed ne e ecei ing any communica ion o ha -
ing access o hei 2021 email add esses. I is highly likely ha nume ous a ec ed
consume s, pa icula ly hose no in ol ed in such online communi ies, a e un-
awa e o he clawback lawsui s agains hem and may only ind ou once en o ce-
men e o s begin in hei home ju isdic ions.
Obse ance o he Hague p ocess o se ing p ocedu al documen s is one o he
ene s o due p ocess in he clawback lawsui s agains he EU consume s. Failu es
o he due p ocess a e absolu ely c i ical o ecogni ion and en o cemen o he
judgemen s in clawback cases, whe he hey will be issued as de aul judgemen s
o no .
All he abo e men ioned ju isdic ion and due p ocess issues, as well as un ai con-
ac e m de ences would come in o play du ing he ecogni ion and en o cemen
o he clawback judgemen s in he EU seems highly implausible.
The ecogni ion and en o cemen p ocess may also p o ide an oppo uni y o chal-
lenge he legal g ounds o he clawbacks hemsel es. In mos coun ies, a s ic
p econdi ion o Ac io Pauliana is p oo o w ongdoing o bad ai h by he coun e -
pa y (Willems, 2012). Simply wi hd awing unds om a Celsius accoun would no
cons i u e w ongdoing o bad ai h unless he e we e ex enua ing ci cums ances,
such as inside knowledge. The e o e, i is unlikely ha blanke clawbacks would
hold up agains a basic good ai h de ence in any EU ju isdic ion.
15 Kiškis
In e es ingly, e en i he US had a i ied he Hague Con en ion, judgmen s agains
EU consume s would s ill likely be disquali ied om ecogni ion unde A icle 6.2
o he Con en ion. This p o ision speci ies ha o a cou o ha e ju isdic ion in
consume cases, he consume mus explici ly consen o he cou ’s ju isdic ion
h ough di ec consen , ei he o ally o in w i ing, a he han h ough a con ac u-
al clause.
Al hough o icial s a is ics a e lacking, only a ac ion o US ci il judgmen s a e
cu en ly ecognised and en o ced in he EU. Some EU coun ies a e known o deny
ecogni ion o mos US ci il judgmen s, and he ecogni ion o de aul judgmen s
is limi ed, e en in mo e libe al EU ju isdic ions (Baumga ne , 2007). Thus, he
likelihood o EU cou s en o cing a US clawback judgmen agains EU consume s
is, he e o e, close o ze o.
Conclusions
The Celsius es a e's clawback cases agains EU consume s p esen complex and
speci ic legal challenges, which a e likely o in imida e and s ess consume s, e en
i hese clawbacks a e legally lawed on se e al on s. De ending agains hem in
he US may no only be legally disad an ageous bu could also mean su ende ing
key de ences ha a e a ailable o consume s unde EU law.
As discussed in his a icle, EU consume s ha e s ong and p i ileged de ences un-
de EU law agains such clawbacks. Unde he B ussels I (Recas ) and Rome I Regu-
la ions, hese clawbacks canno be iled o adjudica ed in US cou s unde US law.
Addi ionally, he e a e majo conce ns ega ding he un ai con ac ual e ms im-
posed by Celsius on hei EU cus ome s, which may u he unde mine he legali y
o hese claims. Mo eo e , he e is signi ican legal doub abou he pe missibili y
o he clawback claims hemsel es.
The EU law a he uni e sally p ecludes he applica ion o o eign law whe e i
would unde mine he igh s o EU consume s. The imposi ion o New Yo k law on
EU consume s can be seen as a iola ion o hese igh s, pa icula ly gi en he sig-
ni ican di e ences be ween US and EU consume p o ec ion s anda ds. The EU’s
s ance on p o ec ing i s consume s om o eign ju isdic ional o e each empha-
sised he b oade commi men o main aining he in eg i y o undamen al igh s
o he EU na ionals amids globalisa ion.
As cu en ly iled, he Celsius clawbacks s and li le chance o being ecognised o
en o ced in EU coun ies. Un o una ely, he law canno en i ely p e en unsc upu-
16 In e ne Policy Re iew 14(3) | 2025
lous pa ies om making unjus i ied claims agains consume s, no can i alle ia e
he esul ing s ess, anxie y and e en unnecessa y legal cos s o consume s. The
isk o un a ou able de aul judgmen s emains, hough any esponsible judge
should be mind ul o in e na ional law be o e issuing such sweeping judgmen s in
his con ex . Hope ully, his a icle se es o highligh hese legal conce ns and
helps p e en such ou comes.
The e a e also conce ns abou he Celsius es a e's good ai h in pu suing hese
clawbacks agains EU consume s. In he au ho 's opinion he clawbacks may be
sel -se ing e o by he consul an s managing he Celsius es a e, aimed a gene -
a ing luc a i e wo k, and ha he likelihood o success agains in e na ional con-
sume s was mis ep esen ed in he Celsius bank up cy p oceedings.
The scale o he Celsius clawbacks is an impo an issue o EU consume au ho i-
ies and lawmake s o add ess. EU consume s would ce ainly eel mo e secu e i
he e we e au ho i a i e and uni o m public communica ion on his ma e ac oss
he EU, especially since i was omi ed om he A e MiCA S udy.
Finally, his si ua ion sugges s di ec ions o he u u e imp o emen o EU ju is-
dic ional and consume law egula ions. P o iding addi ional cla i y on he ju is-
dic ion ules go e ning clawbacks agains consume s — o e en an ou igh ban on
clawbacks agains bona ide consume s — may be inc easingly app op ia e in a
global online en i onmen , whe e consume s o en ha e li le abili y o unde -
s and he ju isdic ion and applicable law o he coun e pa y.
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