JPMorgan settles 1MDB scandal claims with Malaysia for US$330 million

The settlement resolves Malaysia’s civil lawsuit, while Swiss prosecutors found the bank negligent in preventing aggravated money laundering

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A sign outside the headquarters of JPMorgan Chase & Co in New York. Photo: Reuters

Published: 8:00pm, 22 Aug 2025Updated: 8:05pm, 22 Aug 2025

JPMorgan Chase will pay the Malaysian government US$330 million as part of a settlement to resolve all matters related to its role in the multibillion-dollar scandal at state fund 1MDB, both parties said on Friday.

Malaysian and US investigators say at least US$4.5 billion was stolen from 1Malaysia Development Berhad (1MDB) in a globe-spanning scheme between 2009 and 2014.

In 2021, 1MDB sued a unit of JPMorgan, along with those of Deutsche Bank and Coutts & Co, to recover alleged losses from the fund, citing alleged “negligence, breach of contract, conspiracy to defraud/injure, and/or dishonest assistance” on the part of the firms.

It had sought US$800 million from JPMorgan (Switzerland) Ltd, court documents had shown.

On Friday, JPMorgan and Malaysia, in a joint statement, said the company would contribute the settlement payment to the government’s 1MDB Assets Recovery Trust Account.

“The settlement agreement resolves all existing and potential claims and binds both parties from any future claims or litigations related to 1MDB,” it said.

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