Investment Banking

Goldman Sachs sues Malaysian government over $2.5bn 1MDB settlement

The dispute centres on $500m of assets that Goldman agreed to pay by August 2022 

Goldman Sachs, whose CEO is David Solomon, has sought arbitration in a London court over the settlement
Goldman Sachs, whose CEO is David Solomon, has sought arbitration in a London court over the settlement Photo: Bloomberg via Getty Images

Goldman Sachs is suing the government of Malaysia, escalating a dispute over its $2.5bn settlement on the long-running 1MDB money-laundering scandal.

The court filing marks another twist in the saga, a multibillion embezzlement scheme that rocked the bank and was settled in 2020 when Goldman Sachs agreed to pay out $2.5bn to the Malaysian government.

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