How did the 1MDB scandal unfold over the years?

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The 1MDB scandal unfolded through a series of missed payments, investigations, civil lawsuits, and asset seizures culminating in Najib Razak’s arrest

The 1MDB scandal unfolded from Najib Razak launching the 1Malaysia Development Berhad (1MDB) sovereign fund in July 2009 to a chain of missed repayments, government probes, and overseas legal actions that later focused on assets linked to him. In January 2015, 1MDB missed a loan payment of about US$550 million (RM2.2 billion), and by July 2015 the Wall Street Journal reported nearly US$700 million of 1MDB money had entered Najib’s personal bank account. After multiple investigations and legal steps across Malaysia and the United States, Najib was arrested in July 2018 in connection with the 1MDB probe.
Najib launched 1MDB in 2009, then 2015 brought payment stress and early allegations
Three months after taking over as prime minister, Najib launched the 1MDB sovereign fund in July 2009 to invest in energy, real estate and other industries. In January 2015, 1MDB missed a loan payment of about US$550 million (RM2.2 billion) as its debt burdens rose. By March 2015, Malaysia formed a special taskforce to investigate 1MDB, involving officials from the central bank, police, anti-graft agency, and the attorney general’s chambers.
Reports and investigations tied large sums to Najib’s personal account
In July 2015, the Wall Street Journal reported that nearly US$700 million of 1MDB money went into Najib’s personal bank account. In January 2016, Malaysia’s attorney general cleared Najib of wrongdoing, stating that US$681 million in his account was a donation from a member of the Saudi royal family and that Najib had returned US$620 million within a few months. A parliamentary inquiry in April 2016 criticised the 1MDB board as irresponsible and urged further investigation, after which the board resigned.
The United States pursued civil actions over assets linked to alleged misappropriation
In July 2016, the US Department of Justice filed civil lawsuits seeking to seize assets bought with money allegedly stolen from 1MDB, alleging that over US$3.5 billion was misappropriated from the fund. The lawsuits stated that US$681 million from a 2013 bond sale was transferred to an account described as “Malaysian Official 1,” later identified by US and Malaysian officials as Najib. In March 2017, Red Granite, the company behind the 2013 film The Wolf of Wall Street, agreed to pay US$60 million to settle a civil lawsuit related to 1MDB funds, and in December 2017 the US attorney general described the scandal as “kleptocracy at its worst.”
After an election change in 2018, Malaysian investigations expanded to frozen accounts and a July arrest
In May 2018, Najib lost the election to Tun Dr Mahathir Mohamad, who reopened the 1MDB probe and barred Najib and his wife, Rosmah Mansor, from leaving the country. In June 2018, police said nearly US$275 million in assets were found at properties linked to Najib, including 12,000 pieces of jewellery, more than 500 handbags, more than 400 watches, and nearly US$30 million in cash, while bank accounts belonging to Najib’s political party were frozen as part of the probe. In July 2018, authorities said over 400 bank accounts were frozen, and they arrested Najib in connection with the 1MDB probe.

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How did the 1MDB scandal unfold over the years?

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