JAKARTA, Indonesia—An Indonesian court blocked U.S. efforts Tuesday to take control of a $250 million yacht allegedly connected to Malaysia’s 1MDB scandal, saying that its seizure off the resort island of Bali was invalid and ordering the vessel returned to its owner.
The ruling deals a blow to the U.S. Justice Department, which contends that the yacht, the Equanimity, was acquired with money stolen in fraudulent schemes linked to the state investment fund 1Malaysia Development Bhd.
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