Bankrupt Celsius Seeks to Return $50 Million of Locked Crypto

Celsius Network Ltd., the bankrupt cryptocurrency lender, is seeking to give coins back to a sliver of users who are locked out of their accounts.

The company asked for a US bankruptcy judge’s permission to release about $50 million worth of cryptocurrency stuck on the platform in so-called custody accounts, which were designed to store digital assets rather than generate returns. A full hearing on the request is set for October 6, according to court papers.

The move highlights a split among the many thousands of users burned by the company’s bankruptcy. Those who deposited crypto with the ...