[ZenGum]

Person A owns a car.
Person B steals it and sells it to person C, who does not know it is stolen.

Dunno about you lot, but down here, C is not guilty of any crime, but must give the car back to A.
General principle: you can't keep stolen stuff even if you didn't know it was stolen when you got it.

So for the Madoff family, they should be stipped of all assets that the didn't earn themselves. IMHO YMMV etc...