The Japanese subsidiary of the now-bankrupt crypto exchange FTX is looking to begin returning customer assets from February next year, the company said in a statement Thursday.

FTX Japan said it is developing systems to enable its customers to withdraw their assets via Liquid Japan, a crypto trading platform acquired by FTX Trading Ltd in an undisclosed deal this spring.

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A three-step process will see customers open Liquid Japan accounts by mid-January, followed by balance checks and the opening of withdrawals in mid-February.

"We deeply apologize for the big trouble caused by the prolonged suspension of services for the withdrawal of legal currency as well as crypto assets," the subsidiary said in yesterday’s statement.

FTX Japan put on sale

Earlier this month, the Japanese company said it confirmed with the law firm representing FTX Trading in the Chapter 11 bankruptcy proceedings that Japanese customers’ cash and cryptocurrency holdings “should not be part of FTX Japan’s estate.”

Further developments saw the crypto exchange's new management team, which is now helmed by John Ray III, file a motion to the Bankruptcy Court of Delaware to approve bidding procedures for four of the firm’s independent solvent subsidiaries in the U.S., Japan, and Europe.

It was also reported that FTX Japan was holding about $94.5 million in crypto assets and $46 million in fiat currency in designated client accounts.

FTX Japan was less than six months old when its parent company collapsed. When it launched back in June, Bankman-Fried was appointed its interim CEO.

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At the time, he described Japan as “a highly regulated market with a potential market size of almost $1 trillion when it comes to cryptocurrency trading.

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