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Story: FTX Creditor Daizhuo Chen Fights Missed Deadline as $1.8B Reserve Hangs Over Final Hearing

By Pankaj K

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Who Else Got Caught Out. Chen isn't alone. D1 Ventures has been trying to recover $251,000 in USDC and USDT since December…

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The $600 Million Reserve Question. There's still a contested-claims reserve sitting at $2.4 billion.

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A single missed deadline is now holding up one of the last contested motions in the FTX bankruptcy. Chief Judge Karen B.

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Chen filed his motion on March 27. He wants Judge Owens to reverse her earlier denial and accept his late verification.

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FTX's verification deadlines were not soft suggestions.

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Initial checks had to be done by March 1, 2025. Final verification closed June 1, 2025. Both cut off at exactly 4 p.m. ET. Miss either window and you're out.

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Chen isn't alone. D1 Ventures has been trying to recover $251,000 in USDC and USDT since December 2022. They still haven't cleared verification.

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The verification process itself is pretty demanding. Creditors have to pass Know Your Customer checks, file tax forms, and complete onboarding through one of three approved…

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Those who did finish the paperwork? They've done well, all things considered. The fourth repayment round, which closed March 31, paid convenience claims at 120 cents on the dollar.

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See also: Fed Pumps $17 Billion Into Markets and Bitcoin Traders Eye the $65K Level

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There's still a contested-claims reserve sitting at $2.4 billion. The Trust wants to cut that down by $600 million, bringing it to $1.8 billion.

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Owens is expected to rule quickly after the August 19 hearing. No drawn-out deliberation anticipated — she'll likely have a decision ready that same day, which would give clarity…

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Ernst & Young filed its final fee application, which pretty much signals the administrative side of the FTX estate is winding down.

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Sam Bankman-Fried's situation is separate from all of this. His conviction and sentencing went through the appeal process in the Second Circuit, and that chapter is closed.

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The gap between creditors who completed verification and those who didn't is getting starker by the week. Successful claimants already have their money.

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