1MDB scandal: US Justice Dept recovers additional US$20m in funds, bringing total to US$1.4b

KUALA LUMPUR, Jan 20 – The US Justice Department announced last week the recovery of an additional US$20 million (RM94 million) in misappropriated funds linked to the 1Malaysia Development Berhad (1MDB) scandal.

In June 2024, the department said it had recovered, returned, and assisted in returning approximately US$1.4 billion to Malaysia.

The department said the recovered funds were misappropriated from 1MDB between 2009 and 2015 by high-level officials and their associates, including fugitive financier Low Taek Jho, also known as Jho Low.

According to court documents, the funds were laundered through major financial institutions in the US, Switzerland, Singapore, and Luxembourg.

The latest recovery comes as part of an ongoing legal effort involving 43 civil forfeiture actions in the US, which have so far led to the seizure of more than US$1.7 billion in assets.

US authorities said the misappropriated funds were used to purchase luxury assets, including high-end properties in New York and London, a superyacht, and artwork by famous artists.

The Justice Department’s investigation is being led by the FBI’s International Corruption Squad in New York, with assistance from law enforcement agencies in Malaysia, Switzerland, Singapore, and other countries.

Former prime minister Datuk Seri Najib Razak is currently testifying in his own trial involving 1Malaysia Development Berhad’s (1MDB) RM2 billion, which were alleged to have entered his personal bank accounts.