Discuss as:

Judge OKs $520 million payout to MF Global customers

The trustee liquidating MF Global Holdings Ltd's broker-dealer unit won court permission to distribute $520 million of cash, providing relief to customers whose accounts have been frozen since the futures brokerage went bankrupt.

The payout represents 60 percent of the $869 million that has been frozen across commodity customer accounts that contained only cash, the trustee James Giddens has said.

Some 22,000 customers will be entitled to share in the payout. Giddens has said he expects to make the payout by Nov. 21.

A bevy of regulators and government agencies are still searching for about $600 million worth of customers' funds that allegedly went missing as MF Global, which was led by former New Jersey Governor Jon Corzine, struggled to stay afloat amid bad bets on European debt. 

The Wall Street Journal reported Thursday that federal prosectors in New York and Chicago have issued subpoenas in the probe. The newspaper cited people familiar with the case. 

Neither MF Global nor anybody at the firm has been charged with wrongdoing.

Reuters contributed to this report.