A $1 billion business of Madoff sold for just $25.5 million

It was announced that Bernard Madoff's market-making business, which was once worth $1 billion, was sold at an auction to Castor Pollux Securities LLC for up to $25.5 million.

It should be reminded that Madoff, 70, a former non-executive chairman of the Nasdaq stock market, was arrested on December 11 and pleaded guilty to charges including securities fraud, money-laundering and perjury on March 12. Only Madoff and his outside accountant have been charged, although Fortune magazine reported on Friday that his top deputy, Frank DiPascali, is trying to negotiate a plea bargain with federal prosecutors. 

Other investors continue to use the courts to stake claims, notably one lawsuit in the past week by an investor against Madoff's banker JP Morgan Chase, which the investor accuses of knowing that the billions it held in Madoff money was part of a fraud.

Alan Nisselson, a partner at the law firm Windels, Marx Lane & Mittendorf LLP and a member of its bankruptcy and creditors' rights group, has been appointed to oversee a case involving Madoff's personal assets, state the court documents.

Castor Pollux originally had bid $15.5 million for the unit in March.