1MDB Liquidators Sue Standard Chartered for Enabling $2.7 Billion Fraud

Liquidators for Malaysia’s sovereign wealth fund 1MDB have filed a lawsuit against Standard Chartered Bank in Singapore, alleging it enabled fraud resulting in over $2.7 billion in losses between 2009 and 2014. The lawsuit, filed by financial services firm Kroll in Singapore’s High Court, claims Standard Chartered allowed over 100 intrabank transfers that concealed stolen funds and overlooked red flags indicating fraud. The transfers included payments to the personal accounts of former Malaysian Prime Minister Najib Razak, who is serving a prison sentence for graft linked to 1MDB, and purchases of jewellery and luxury goods for his family. Standard Chartered rejected the claims, stating it had not yet received the legal filing but would vigorously defend itself. This lawsuit is part of a broader effort to recover funds from the $4.5 billion 1MDB scandal, which has prompted global investigations and penalties against multiple banks and individuals.