Julie Scuderi writes about the Madoff scandal and the investors that were burned are coming forward in droves, including Spanish bank Santander, French bank BNP Paribas, Fairfield Greenwich Group, Tremont Capital Management and Maxam Capital Management. More on those hedge funds here at HedgeCo.

Also at a loss are the Royal Bank of Scotland and hedge fund Man Group, there are also reports coming in from Asia.

However , Vienna based hedge fund manager Salus Alpha Group Services GmbH. said that any exposure to Madoff funds were systematically prevented by the proprietary investment approach of their funds at all times.

"I am not shocked that Madoff did blow up but I am shocked that so many obviously unqualified naive fund of hedge fund managers who are obviously doing no due diligence nor do they understand hedge fund strategies do manage so much amounts of money and wonder why this happened to them" said Oliver Prock, CIO of Salus Alpha.

More at Salus Alpha Hedge Funds Not Exposed To Madoff Strategy