The 1MDB-linked money Penang-born tycoon Jho Low is accused of using to purchase properties in London that the US Department of Justice wants to seize, had allegedly been laundered through the purchase of an American energy company.

According to The Wall Street Journal (WSJ), the DOJ made the allegation in a lawsuit to seize properties dated last Wednesday.

The DOJ filing claimed that in 2013 and 2014, Low had moved US$50 million allegedly siphoned from 1MDB through a series of bank accounts and shell companies to help fund the US$2.2 billion purchase of Coastal Energy.

At the time, Coastal Energy was a Houston-based firm owned by "legendary oil man" Oscar Wyatt Jr.

The remaining US$2.15 billion had been paid by Compañía Española de Petróleos SAU (Cepsa), a Spanish energy firm owned by Abu Dhabi wealth fund International Petroleum Investment Co (IPIC)...