hope it works out for ya - i sure have seen a lot of probs like this especially the last year or so, prior to that it was a not a common thing to happen, regretfully that seems to be changing.
i know its been said a thousand times but here we go again:
NEVER pay up front for a custom, a small deposit (not more than 10%) might be required if ya use exotic materials/its a 1 off design, if someone wants payment in full up front imho thats a danger signal.
no matter how much ya want the knife dont do it. i have bought a lot of customs thru the yrs and have only been asked to pay up front one time, didnt do it and am glad i didnt the guy ended up on GB&U for taking deposits and not delivering the goods. a legit smith wont ask ya to do it anyway, so if one does, look out.