JPMorgan agrees to pay Malaysia US$330 million to settle 1MDB issues
JPMorgan Chase Bank is seen in New York City, US, Mar 21, 2023. (File photo: REUTERS/Caitlin Ochs)
KUALA LUMPUR: 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 multi-billion dollar scandal at state fund 1MDB, both parties said on Friday (Aug 22).
Malaysian and US investigators say at least US$4.5 billion was stolen from 1Malaysia Development Berhad in a globe-spanning scheme between 2009 and 2014.
In 2021, 1MDB sued a unit of JP Morgan, 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 JP Morgan (Switzerland) 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.
Each party will also withdraw all pending appeals connected with the lawsuit previously filed by 1MDB against the JPMorgan unit at the Malaysian High Court, they said.
