Celsius clawbacks against EU consumers: A real-world test of EU law on online consumer contracts

Celsius Network was a crypto lending giant managing nearly USD 12 billion and aggressively courting EU crypto enthusiasts. More than two years after it entered bankruptcy, many former clients regret the day they signed up with the failed platform. The Celsius clawback lawsuits in the US against EU consumers present significant legal challenges that test the limits of EU consumer protection laws in cross-border digital finance cases. This article explores the defences available to EU consumers, focusing on the jurisdictional and substantive law rules set forth by the Brussels I (Recast) and Rome I Regulations, alongside the EU's stringent protections against unfair contractual terms. Despite Celsius' efforts to impose US law and jurisdiction on its EU customers, the article argues that these claims are legally unjustified. While such clawbacks cause stress and potential harm, including the risk of default judgments, EU law provides strong defences that should preclude any attempt to recognise and enforce these judgments within the EU. The article also addresses broader issues such as extraterritorial jurisdiction, the application of Actio Pauliana against consumers, and due process concerns in cross-border legal actions. It concludes with recommendations for clearer EU public guidance on consumer clawbacks and suggests directions for future policy and regulatory action.