FTX users in Japan will be able to withdraw funds from their accounts starting in February. This move will make the Japanese users one of the first groups to get their money back from the collapsed crypto exchange.

As per CoinDesk, FTX Japan will allow withdrawals in mid-February, and this was announced by the crypto trading firm's Japanese subsidiary last week. The decision was made after its bankruptcy lawyers in the United States affirmed that the funds of customers "should not be part of FTX Japan's estate given how these assets are held and property interests under Japanese law."

For the withdrawal process, FTX Japan users will be asked to set up an account with a local crypto exchange called Liquid Japan. The funds would then be transferred to the platform, and once logged in to the site, users will be able to view their balances; then withdrawals could be made in mid-February. Liquid Japan was acquired by FTX in early 2022.

The crypto firm said that schedules may still change, and this would depend on the progress of the external security audit. Withdrawals from the Japanese unit of FTX were halted on Nov. 8 after the country's financial regulators ordered the suspension of its services. Three days later, FTX Trading Ltd. filed for Chapter 11 bankruptcy protection in the U.S.

"We deeply apologize for causing great concern and inconvenience to our customers due to the long-term suspension of the service," the company said in a blog post.

This development certainly offers big relief for customers of FTX. This is because access to funds was cut after the Chapter 11 filing, leaving thousands of clients around the world unable to track or withdraw their money. Then again, John J. Tay III, the new managing chief of the company, said FTX's international customers might expect to get less from the bankruptcy court than users in the U.S., CNBC reported.

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