As US Federal prosecutors step up their investigation into billions of dollars siphoned away from a Malaysian government investment fund, they are poised to launch one of the largest asset seizures in U.S. history.

This was reported by the Wall Street Journal quoting people familiar with the matter.

According to people familiar with the matter the Journal reported that properties and other assets purchased with money allegedly misappropriated from the Malaysian fund are expected to be included in civil lawsuits seeking to seize the assets by the authorities.

People linked to the fund have invested millions of dollars in real estate and businesses in the U.S., reported the Wall Street Journal.

A wide-ranging criminal investigation into people and institutions connected with 1Malaysia Development Bhd., known as 1MDB, is being conducted by agents from the Federal Bureau of Investigation’s international corruption unit. 1Malaysia Development Bhd. was created to drive Malaysia’s economy and is a sovereign-wealth fund that was set up by Prime Minister Najib Razak in 2009.

The U.S. government’s first action tied to the 1MDB investigation is the expected asset seizures. The civil suits filed since 2015 seeking to seize $850 million in assets involving three telecom companies in an unrelated case is expected to be surpassed by this action even though it is unknown what assets will be seized.

The relationship with Malaysia, a moderate Muslim nation that has long been an important U.S. ally in Southeast Asia, could also be upended by the expected actions by U.S. authorities against the fund. Malaysia has been seen as a bulwark against China, which has increasingly asserted its power across Asia and the country has deep ties to the Middle East. Including playing golf together in Hawaii over the Christmas holidays in 2014, a relationship with Mr. Najib was cultivated by President Barack Omaba.

Set up in 2010 to target the spoils of overseas corruption cases, the Justice Department’s Kleptocracy Asset Recovery Initiative would lead the asset seizure. Assets related to alleged corruption by three global telecom companies and intermediaries close to the elder daughter of Uzbekistan’s president was its biggest attempted seizure so far and was worth $850 million of assets.

A corruption case with U.S. and Dutch regulators was agreed to be settled by paying $795 million by VimpelCom Ltd., a telecommunications company based in Amsterdam, and its wholly owned subsidiary, Unitel LLC. Unitel pleaded guilty and

VimpelCom admitted wrongdoing. At the time, the Uzbek president’s daughter couldn’t be reached for comment. The asset forfeiture case is still in litigation.

Many aspects of the alleged money laundering and siphoning of cash away from 1MDB have already been reported in the media. The funding of the 2013 film “the Wolf of Wall Street”, starring Leonardo DiCaprio and directed by Martin Scorsese as well as the real estate in New York City and Los Angeles were the areas where tens of millions of dollars from the funds that originated with 1MDB were invested.

The Journal reported citing sources that, using funds originating with 1MDB Mr. Aziz had bought luxury real estate in New York City and Los Angeles worth at least $50 million, investigators believe.

(Adapted from The Wall Street Journal)