Malaysia's 1MDB scandal

1Malaysia Development Berhad (1MDB) was established in 2009 as a state investment fund meant to promote economic development projects, but investigative reporting beginning around 2015 revealed that officials linked to the fund had allegedly diverted billions of dollars through a web of shell companies and offshore accounts, with roughly $4.5 billion estimated to have been misappropriated in total. Some of the diverted funds were reportedly used to finance a lavish lifestyle for associates of then-prime minister Najib Razak, including funding for the Hollywood film 'The Wolf of Wall Street,' and hundreds of millions of dollars were traced directly into Najib's personal bank accounts, which he claimed were a political donation from Saudi Arabia's royal family. The scandal triggered investigations across multiple countries, including the United States, Switzerland and Singapore, and contributed directly to Najib's electoral defeat in 2018; he was later convicted on corruption charges and sentenced to prison. Global investment bank Goldman Sachs, which had helped 1MDB raise bond financing, agreed to pay roughly $3.9 billion in fines and settlements over its role in the affair.