The sole dispute at FTX’s bankruptcy hearing on August 19 involves Daizhuo Chen, a claimant seeking a second chance after missing the June 1, 2025 verification deadline. Judge Karen B. Owens must decide whether civil procedure rules allow his case to be reopened. Creditors who completed the verification process have recovered their full claims, with convenience claims reaching 120%, while hundreds of thousands of claims were voided for non-compliance. The FTX Recovery Trust distributed $2.2 billion in March and $900 million in July, and is seeking a $600 million reduction in its reserve. Sam Bankman-Fried, sentenced to 25 years in prison, had his conviction upheld on appeal.
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