Irving H. Picard, the trustee overseeing the liquidation of Madoff's assets, has sent 12 checks to unnamed victims of the alleged fraud for $500,000 each.
The money comes from the Securities Investor Protection Corporation, or SIPC.
According to CNBC, the victims who are receiving these checks had a unique set of circumstances: they never withdrew funds from their accounts, and have the paperwork to prove it.
The maximum payout under CIPC is $500,000, and it is not clear whether these checks will make the victims whole.
On Thursday, Madoff is scheduled to appear in court and enter a guilty plea for the supposed $50 billion scam.
Victims who would like to testify at the hearing have until Wednesday morning to notify the court.