JPMorgan to pay RM1.4b for 1MDB settlement

22 August 2025

PUTRAJAYA: JPMorganChase will pay the Malaysian government RM1.4bil to resolve all matters between both parties in the 1Malaysia Development Bhd (1MDB) scandal.

In a statement today, the Finance Ministry said the settlement agreement resolves all existing and potential claims and binds both parties from any future claims or litigations related to 1MDB.

"The Malaysian Government and JPMorganChase are pleased to announce that they have resolved all matters relating to 1MDB.

"Under the settlement, JPMorganChase will, without admission of liability, contribute RM1.4 billion (US$ 330 million) to Malaysia's Assets Recovery Trust Account,” read the statement.

The ministry added that each party will also withdraw all pending appeals connected with the lawsuit previously filed by 1MDB against J.P. Morgan (Switzerland) Ltd in the High Court at Kuala Lumpur.

The settlement follows the conviction of JPMorgan’s unit in Switzerland, announced earlier on Friday over the bank’s failures to prevent the embezzlement of assets from 1MDB.

According to Reuters, 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 reportedly sought US$800mil (RM3.38bil) from JP Morgan (Switzerland) Ltd.

The 1MDB investment fund became the centre of a scandal that spawned probes across continents, with stolen funds estimated to have exceeded US$4 billion.

Investigations led to the imprisonment of ex-Goldman Sachs Group Inc executives and a former Malaysian prime minister.