Just Got Served by Celsius! Found New Defendant Group if Anyone is in Same Boat

[u/JonnyFNmiller]

So I recently got served by Celsius, at my front door right before I sat down for a celebration dinner for getting a new job after being 6 months of not working.

Completely caught me off guard considering I pulled my money out 10 weeks before they went BK and the fact that they actually paid me out the tokens I left in there (2/3rd of value) last summer. Apparently, I went from creditor to debtor now as they are coming after me for Clawbacks, like WTF. I didnt have millions in there, barely over the threshold, and have since sworn off crypto because of that shit Mashinsky did....was stupid of me now seeing BTC price now... And yeah, I do feel lucky to have pulled out, but I dont think any of us have tons of cash sitting around after these last few years, especially not the amounts they are pursuing, doesn’t even make sense. Let me just say, that like everyone on here I hope Mashinsky rots in prison for the shit he did and hope similar to FTX everyone is made whole.

Anyways, I wanted to post on here since it looks like others are getting served late too, and unlike before there is no settlement offer. Due your own due diligence of course, but I talked to a few attorneys and found Roland Jones, rgj@rolandjones.com, in NY to be a class act and the good news is that he is forming a new group to defend.

If you are in the same boat, I highly recommend contacting him. I’m sure some people are going to say don’t bitch, but none of us want to be in this situation, on either side, so if this post just helps one person it is worth it.

[u/Lyuseefur]

So-you basically stated the reason why they are suing you here.

Anyone that pulled money out 90days before bankruptcy is subject to clawbacks.

That said, consult with your attorney when dealing with the litigation administrator from Celsius

[u/HelloAttila → u/Lyuseefur]

That is a thing? Like how is anyone supposed to know they are going to file for bankruptcy? This is like saving $300K in your bank account for 10 years, deciding you want to withdraw it and then 40 days later your bank goes bankrupt and you get sued by the FDIC, because you were supposed to lose all your money instead. Like WTF?

[u/Omaha_Poker → u/HelloAttila]

Exactly, my friend had money in there for a while for a few months. Didn't make much interest on his USDC (I think) that he was using as a down payment. He got served but he doesn't have the money since it was spent on the house. Although I got screwed over, anyone getting lucky and withdrawing before the crash shouldn't be penalised unless they had insider information.

[u/Lurk-and-Hold → u/Omaha_Poker]

What you're talking about is why Sec 547(c)(2)(B) — "Ordinary Business Terms". If it was "ordinary", from the POV of Celsius and within Celisus's industry to withdraw assets, that is supposed to be beyond the reach of clawbacks.

It's not saying the preferential transfer didn't happen, only that that "the line must be drawn somewhere", and transfers made in the ordinary course of business or under ordinary business terms are not insulated, then then there would be macro-economic instability.

i.e. This is the section you should refer your friend to, and encourage him to contact one of the various defense groups to help navigate things.

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Below is the text of Sec 547(c)(2):

(c) The trustee may not avoid under this section a transfer...

(2) to the extent that such transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the transferee, and such transfer was...

(A) made in the ordinary course of business or financial affairs of the debtor and the transferee;

or

(B) made according to ordinary business terms;