24/7 Cryptocurrency News

FTX To Return Customer Funds In February, But There’s A Catch

FTX Japan reveals timeline and roadmap to return customers' crypto assets in February by enabling withdrawals through Liquid Japan.

Published by

Varinder Singh

Updated 06 Sep, 2025 | 07:26:46 AM UTC

FTX To Return Customer Funds In February, But There’s A Catch

Crypto exchange FTX and sister firm Alameda’s executives Sam Bankman-Fried, Caroline Ellison, and Gary Wong are facing criminal charges in the U.S. Meanwhile, FTX Debtors under new CEO John J. Ray III plans to return customer funds through asset sales as part of the Chapter 11 bankruptcy process.

Meanwhile, FTX Japan has finally revealed plans to return customer funds as the assets are unaffected by bankruptcy due to Japan’s regulations. FTX Turkey has already returned client assets.

FTX Japan Reveals Plans To Return Customer Assets

Crypto exchange FTX Japan in an official announcement on December 29 revealed the timeline and roadmap for returning customer funds. Customers will be able to withdraw their crypto assets from the affiliated exchange Liquid Japan in mid-February.

According to the timeline and roadmap, customers eligible for FTX Japan returns will be notified through an email with a link to open an account at Liquid Japan in mid-January. Customers who already have an account with Liquid Japan are not required to follow this step.

Thereafter, users will be able to log in to Liquid Japan to check their crypto assets and transfer them from FTX Japan to Liquid Japan. However, it should be noted that customer funds return withdrawal may face delays due to a security audit, incorporating controls, reconciliation, and reviews.

After the transfer of crypto assets to Liquid Japan, customers can easily withdraw their assets. Japanese subsidiary will become the second subsidiary after FTX Turkey to return customer funds.

FTX Japan executive earlier claimed that a separate withdrawal system is under development to resume withdrawals for customers by the end of this year. The Japanese arm reportedly has around 19.6 billion yen ($138 million) in deposits as of November 10.

Meanwhile, Former FTX CEO Sam Bankman-Fried is scheduled to be arraigned in Manhattan federal court on the afternoon of January 3, 2023, before U.S. District Judge Lewis Kaplan.

Also Read: Is Bitcoin Price Fall To $10K Inevitable In Early 2023?

Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by

Varinder Singh

Updated 06 Sep, 2025 | 07:26:46 AM

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.