A New York bankruptcy judge has rejected a legal challenge by Bernard Madoff's victims over how they should be compensated.

The investors in Madoff's firm had argued that they are owed $64.8 billion reflected on fictitious account statements.

Judge Burton Lifland on Monday upheld a formula being used by a trustee overseeing the liquidation of Madoff's assets.

The trustee has said claims should be based on how much money the victims actually invested, minus what they withdrew.

The 71-year-old Madoff was sentenced last year to 150 years in prison for orchestrating an epic Ponzi scheme that wiped out life savings and entire charities.