A man covers his mouth as he walks past a 1 Malaysia Development Berhad (1MDB) billboard at the funds flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia, February 27, 2015.
In a civil suit seeking to seize assets allegedly bought with 1MDB money, the DoJ alleges that playboy financier Jho Low used about $250 million stolen from the fund to purchase the Cayman Islands-registered yacht.
"The ultimate owner of this yacht is believed to be a Malaysian citizen known as Low Taek Jho, who is now a fugitive and believed to be the mastermind of this plan to steal billions of dollars from 1MDB", said Al Jazeera's Florence Looi, reporting from Malaysian capital Kuala Lumpur.
"The Mahathir regime's illegal act today, ignoring court rulings in legal proceedings in the USA and Indonesia, prove he has no interest in a fair and just process", he said in a statement Monday.
Low's whereabouts are unknown but he has previously denied wrongdoing.
Defense Minister Mohamad Sabu said in a written reply to a question in parliament on Monday that the King Salman Center for International Peace will cease operation immediately and that its function will be absorbed by the Malaysian Institute of Defense and Security.
"The Court issued a Warrant of Arrest against it", he said in a statement today. We want to know where they can get so much money to buy such an expensive yacht.
"He arrived at around 5pm and his statements were recorded for 45 minutes", MACC added.
The fund, founded by Najib, is at the center of money-laundering probes in at least six countries, including the United States, Switzerland and Singapore.
Finance Minister Lim Guan Eng told reporters the government planned to take inventory of items one the yacht and open the vessel for public viewing, before eventually selling it "at the highest price".
Najib set up 1MDB when he took power in 2009, but it accumulated billions in debts.
His lawyers opposed the U.S. government's request to suspend proceedings to allow it to find out what Malaysia plans to do with the asset, as the government isn't entitled to imposing "undefined, indefinite" delays, they said in the filing.
The US Department of Justice has said more than $4bn was misappropriated by high-level officials from the fund and their associates.