It has been claimed that FTX Japan, the Japanese subsidiary of bankrupt cryptocurrency exchange FTX, intends to begin withdrawals for affected consumers starting in February.

As part of the procedure to start enabling withdrawals, FTX Japan is said to have sent messages asking clients to check their account balances as part of the process that began on February 17 and was reported by Bloomberg. The exchange’s chief operating officer, Seth Melamed, reportedly said that clients will be able to move assets to accounts on the FTX-controlled Liquid Global platform, with withdrawals beginning “very soon.”

Melamed expressed confidence that the deadline will be met, saying: “We are confident that we will.”

In November 2022, FTX Group filed for protection under Chapter 11 of the United States Bankruptcy Code. This action was taken in conjunction with three of the company’s 134 subsidiaries: FTX Japan Holdings, FTX Japan, and FTX Japan Services. However, the Japan Financial Services Agency (also known as FSA) had recommended that FTX Japan stop trading orders before the US bankruptcy filing.

In response to a directive from the FSA, FTX Japan submitted a proposal in December 2022 in the hope that user withdrawals will work again. The strategy proposed that FTX Japan client assets not be included in the company’s bankruptcy proceedings, noting requirements that exchanges must keep client money separate from their own funds.

According to a report by the NHK news organization, FTX Japan had around 19.6 billion yen in cash when the company suspended operations in November. This equated to more than $138 million at the time. On the other hand, it has been claimed that FTX creditors had raised over $5 billion in cash and cryptocurrency as of January.