The 64th Street pad was listed for $8.9 million. The couple reportedly paid $8 million. The money will reimburse Madoff's victims, minus the broker's commission.
Al Kahn made his fortune on Cabbage Patch dolls and Pokemon.
Madoff swindled investors of $65 billion in a Ponzi scheme. The financier is serving a 150-year prison sentence.
The Kahns' old apartment, in the Time Warner Center, is on the market for $3 million.
They'll decorate their new digs with their folk art collection and quirky antiques.
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Information from: New York Post, www.nypost.com