Singapore Court Dismisses Liquidators' Case Against Banks in 1MDB Scandal

Singapore's High Court has ruled against a group of foreign liquidators who sought to take legal action against Standard Chartered Bank and BSI Bank, stemming from their alleged involvement in the 1Malaysia Development Berhad (1MDB) scandal.

The liquidators claimed the banks facilitated transactions that resulted in financial losses exceeding $2.7 billion, part of a larger scheme where approximately $4.5 billion was misappropriated from Malaysia's state fund between 2009 and 2014.

Judge Aidan Xu cited the inapplicability of Singapore's cross-border insolvency laws for incidents pre-dating their 2018 implementation as grounds for dismissal. Meanwhile, the liquidators are evaluating alternative legal routes, including a potential appeal, to recover funds for Malaysia.

(With inputs from agencies.)