New York-based hedge fund D.E. Shaw has decided not to place its bid to buy Madoff Securities, CNBC has learned.
D.E. Shaw had previously emerged as the leading bidder for the firm before it decided to pull out on its offer.
The bidding is expected to continue until next Monday, now with a total of three bidders.
The bidding price is expected to be only a fraction of the business's one-time worth of $1 billion. According to sources, one bid came in at $15 million.
Madoff Securities was founded by Bernard Madoff in 1960 where he was the chairman until his arrest on December 2008. The firm was as a successful third-market provider, which eventually surpassed other exchange specialist firms.
Madoff Securities was the largest market maker at the NASDAQ at one point and in 2008, was the sixth largest market maker on Wall Street.
Madoff, who pleaded guilty to running a multibillion-dollar Ponzi scheme, is currently in jail awaiting sentencing.