FTX Japan is looking to restart withdrawals after a plan to return deposits was approved by its parent, the failed FTX exchange.
If the plan works out, the collapsed crypto exchange's users in Japan might be some of the first customers to get their money back.
Withdrawals from FTX Japan were halted on Nov. 8 after local financial regulators ordered the exchange to suspend services. Sam Bankman-Fried's global enterprise, FTX Trading Ltd., filed for Chapter 11 bankruptcy protection in the U.S. three days later.
In a notice posted on its website, FTX Japan said it was able to confirm with the company's bankruptcy lawyers in the U.S. that Japanese customers' funds "should not be part of FTX Japan’s estate given how these assets are held and property interests under Japanese law."
FTX Japan had been working on the plan to restart withdrawals for the last two weeks, and says it was approved by the FTX Trading management team.
"Development work for this plan has already started and our engineering teams are working to allow FTX Japan users to withdraw their funds. As part of the plan, we are incorporating controls, security audit, reconciliations and reviews to put in place a robust and secure process," the notice said.
The subsidiary is set to "publish information about customer assets held in segregated wallets"and in a trust account each Monday, according to the notice.
"FTX Japan aims to publish additional information regarding the resumption of withdrawals for FTX Japan users in short order," the notice said.
Read more: FTX’s Collapse Was a Crime, Not an Accident
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.