--- description: U.S. federal prosecutors will seize more than $1 billion in assets linked to a controversial Malaysian state development fund title: U.S. to Seize $1 Billion In Assets in Malaysia's 1MDB Case image: https://static.time.com/v3/assets/bltea6093859af6183b/blt96cb2bd4f2305f76/69889cfd3c1639004945e1fe/gettyimages-479295738.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close * [Malaysia](/tag/malaysia/) ## Malaysia Update your preferences in [Account Settings](/account/preferences/) Close # The U.S. Is Seizing $1 Billion in Assets in Malaysia's 1MDB Corruption Case by [Nash Jenkins](/author/p-nash-jenkins/) ## Nash Jenkins Update your preferences in [Account Settings](/account/preferences/) Close Jul 21, 2016 8:20 AM CUT  The 1MDB logo is seen on a billboard in Kuala Lumpur on July 3, 2015 The 1MDB logo is seen on a billboard in Kuala Lumpur on July 3, 2015Manan Vatsyayana—AFP/Getty Images by [Nash Jenkins](/author/p-nash-jenkins/) ## Nash Jenkins Update your preferences in [Account Settings](/account/preferences/) Close Jul 21, 2016 8:20 AM CUT U.S. federal prosecutors have filed a civil lawsuit in order to seize more than $1 billion in assets they believe were obtained with funds siphoned off a controversial Malaysian state development fund. The move, [announced](https://www.justice.gov/opa/pr/united-states-seeks-recover-more-1-billion-obtained-corruption-involving-malaysian-sovereign "undefined") by U.S. Attorney General Loretta Lynch on Wednesday, is one of the largest asset seizures in U.S. history, the _Wall Street Journal_ reports, and the “largest single action” under the Department of Justice’s [new antikleptocracy initiative.](https://www.fbi.gov/news/stories/us-seeks-to-recover-1-billion-in-largest-kleptocracy-case-to-date "undefined") For more than a year, the fund in question, 1 Malaysia Development Berhad (1MDB), has been the subject of international scrutiny after the media reported that massive sums of cash had allegedly been transferred from the fund into the private bank accounts of Malaysian Prime Minister Najib Razak. The scandal has precipitated demands in Malaysia for Najib’s resignation and a series of global investigations in the matter. [According](https://www.fbi.gov/news/stories/us-seeks-to-recover-1-billion-in-largest-kleptocracy-case-to-date "undefined") to the FBI, powerful officials at 1MDB siphoned more than $3.5 billion from the fund and laundered it though a series of international transactions. It was then used to bankroll decadent purchases, ranging from luxury apartments to fine art. Prosecutors claim, as several media outlets have [reported](http://www.wsj.com/articles/malaysias-1mdb-the-secret-money-behind-the-wolf-of-wall-street-1459531987 "undefined") in the past, that the 2013 blockbuster film _The Wolf of Wall Street_, which was co-produced by Najib’s stepson Riza Aziz, was bankrolled by the stolen 1MDB funds. (Riza Aziz is directly named in the lawsuit.) “The $1 billion in assets that we are discussing today are just a portion of the more than $3 billion that were stolen from 1MDB and laundered through American financial institutions in violation of United States law,” Lynch [said](https://www.justice.gov/opa/speech/attorney-general-loretta-e-lynch-delivers-remarks-press-conference-announcing-significant "undefined"), going on to note that “unfortunately, sadly, tragically, a number of corrupt 1MBD officials treated this public trust as a personal bank account.” Since the scandal surrounding 1MDB erupted last summer, Prime Minister Najib has repeatedly denied wrongdoing, and was [exonerated](http://time.com/4193659/najib-razak-1mdb-corrupt-saudi/ "undefined") by Malaysia’s Attorney General in January. The U.S. lawsuit does not directly name him in the case; however, there are several references to an unnamed “Malaysian Official 1,” which the _Wall Street Journal_ [reports](http://www.wsj.com/articles/u-s-seeks-1-billion-in-asset-seizures-tied-to-malaysian-fund-1mdb-1469019540 "undefined") is a moniker for Najib. Najib’s office says it will “fully cooperate” with the proceedings, the BBC [reports](http://www.bbc.com/news/world-asia-36852560 "undefined"). “Today’s action sends a message to corrupt foreign officials,” special agent Darryl Wegner, who heads the FBI’s International Corruption Unit, [said](https://www.fbi.gov/news/stories/us-seeks-to-recover-1-billion-in-largest-kleptocracy-case-to-date "undefined") in a statement. “The FBI, together with our international partners, will find these individuals and root out their corruption.” ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/4416426/malaysia-1mdb-us-assets-seized/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/4416426/malaysia-1mdb-us-assets-seized/"},"headline":"The U.S. Is Seizing $1 Billion in Assets in Malaysia's 1MDB Corruption Case","datePublished":"2016-07-21T08:20:02.000Z","dateModified":"2026-02-22T23:25:18.465Z","description":"U.S. Attorney General Loretta Lynch accused a number of 1MDB officials of treating \"this public trust as a personal bank account\"","url":"https://time.com/4416426/malaysia-1mdb-us-assets-seized/","keywords":["Malaysia","Najib Razak"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt96cb2bd4f2305f76/69889cfd3c1639004945e1fe/gettyimages-479295738.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Nash Jenkins","jobTitle":null,"url":"https://time.com/author/p-nash-jenkins/"}],"articleSection":"World","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt96cb2bd4f2305f76/69889cfd3c1639004945e1fe/gettyimages-479295738.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"MALAYSIA-POLITICS-ECONOMY-1MDB","caption":"MALAYSIA-POLITICS-ECONOMY-1MDB","creditText":"Manan Vatsyayana—AFP/Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/malaysia/","name":"Malaysia"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/4416426/malaysia-1mdb-us-assets-seized/","name":"The U.S. Is Seizing $1 Billion in Assets in Malaysia's 1MDB Corruption Case"}}]}] ```