The FTX bankruptcy case is down to a single contested motion as a Delaware court prepares to hear arguments on Wednesday over a customer's missed verification deadline.

Claimant Daizhuo Chen filed a motion in March asking Chief Judge Karen B. Owens to reconsider her refusal to allow him to complete KYC checks late. He cites procedural rules that permit reopening decisions when new evidence emerges, but the court has not indicated any such evidence exists.

FTX had instructed customers to complete verification between March 1 and June 1, 2025, with both deadlines closing at 4 p.m. ET. The FTX Recovery Trust, which is winding down the estate, objected to Chen's request on July 16, continuing its pattern of opposing similar late-filing requests.

Chen is not the only one in this position. D1 Ventures has been pursuing $251,000 in USDC and USDT since December 2022, but the Trust says that account also failed verification. That motion was adjourned without a new date, and two other lawsuits remain open as well.

In a sign the estate is closing out, Ernst & Young filed a final fee application, and counsel will submit orders without argument.

Verification is the gate to payment. Claimants must pass KYC checks, file tax forms, and onboard with BitGo, Kraken, or Payoneer. Missing any step means the money moves on without them. The Trust has said hundreds of thousands of claims were already thrown out for failing these checks.

The gap between those who completed paperwork and those who didn't is stark. Creditors who finished have recovered their full claims, with several classes receiving more. According to the Trust, recovery rates are as follows:

  • Convenience claims: 120% recovered
  • U.S. customer claims: 100% recovered
  • General unsecured claims: 100% recovered
  • Dotcom customer claims: 96% recovered

These totals run through the fourth round of repayments on March 31, which distributed about $2.2 billion. A further $900 million followed on July 31, the smallest FTX distribution so far. Money is still held back for contested claims, though the Trust has asked to reduce that reserve by $600 million, from $2.4 billion to $1.8 billion.

Sam Bankman-Fried has no role in this matter. His conviction and 25-year sentence were upheld in June, and the appeal mandate issued in August ended his case at the Second Circuit.

The hearing starts at 9:30 a.m. ET on Wednesday via Zoom. Owens is expected to rule from the bench, and her decision will signal how much room remains for late filers.