The Malaysian state fund at the center of the massive bribery scandal was 1MDB, short for 1Malaysia Development Berhad.
Established in 2009, 1MDB was intended as a government-backed strategic development fund to attract investment and support Malaysia’s economic growth. It raised billions through bonds and other financing, but money was diverted through shell companies, offshore accounts, and suspicious transactions. The scheme became an international scandal involving politicians, financiers, banks, and intermediaries.
Malaysian prime minister Najib Razak helped establish the fund and chaired its advisory board. Financier Jho Low, who held no formal position at 1MDB, was accused of orchestrating major parts of the money movement. Investigators said more than US$4.5 billion was misappropriated, while 1MDB retained enormous debts.
A common mix-up is treating 1MDB as a private corporation or a Malaysian bank: it was a state-owned strategic investment fund. The scandal also reached Hollywood through investments associated with the film company Red Granite Pictures and the film The Wolf of Wall Street. International authorities have pursued asset recovery and criminal cases for years.