The New York trustee recovering money for investors cheated in Bernard Madoff's multibillion-dollar Ponzi scheme has distributed $US355 million more to victims.

Trustee Irving Picard said in a release that over half of Madoff's investors with allowable claims have been fully compensated.

He adds that everyone with an allowable claim of less than $976,000 has been fully paid.

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Picard says the latest distribution to investors was the fifth and represents another significant step forward.

Picard says the average payout in the latest round was $330,000. The smallest is $431 and the biggest is $67 million.

So far, Picard's office has recovered over $10.5 billion. More than $7.2 billion has been paid out.

Investors lost about $20 billion.

Madoff was arrested in 2008. He is serving a 150-year prison sentence.