Federal authorities plan to sell paintings from renowned artists Jean-Michel Basquiat, Pablo Picasso, and Diane Arbus, acquired with funds linked to the 1MDB scandal.
In an unprecedented move, four artworks by Pablo Picasso, Jean-Michel Basquiat, and Diane Arbus are currently being auctioned online by the US Marshals Service. The auction, which began on July 16, 2025, and is scheduled to end on September 4, 2025, is being conducted via the Texas-based auction house, Gaston and Sheehan [1][2][3].
The artworks involved are:
- Jean-Michel Basquiat’s Self Portrait (1982) and Red Man One (1982)
- Pablo Picasso’s Tête de taureau et broc (1939)
- Diane Arbus’s Child with a Toy Hand Grenade (1962)[1][2][3].
The starting bid for Basquiat's Red Man One (1982), which was purchased for $9.4 million from the Helly Nahmad Gallery in New York in or around November 2012, is approximately $2.975 million [2]. Basquiat's Self Portrait (1982) has a starting bid of around $850,000. Picasso's Tête de taureau et broc (1939) and Arbus's Child with a Toy Hand Grenade (1962) have starting bids of approximately $850,000 and $4,400, respectively [2].
These opening bids are considered quite low in comparison to historical market values for such high-profile artworks, which has drawn skepticism in the art world [1].
The artworks were forfeited as part of the US Department of Justice’s efforts related to the 1MDB financial scandal involving embezzlement and money laundering. Some pieces were surrendered voluntarily by persons connected to the scandal, including Leonardo DiCaprio, who had previously received several works as gifts from fugitive financier Jho Low [2][3].
The auction website and process have drawn criticism for lacking prestige and for the scandal-tainted provenance, which may discourage major collectors despite the artworks’ high quality and attractive starting prices [1].
The proceeds from the sale of assets connected to the 1MDB case will benefit people who were harmed by the corruption in Malaysia. Notably, more than $4.5 billion was stolen from Malaysia’s sovereign investment development fund between 2009 and 2015.
Gaston and Sheehan, an auction house in Pflugerville, Texas, has been contracted by the US government to sell these artworks. The company previously sold Heinz Schulz-Neudamm's "Metropolis" 1927 film poster and Andy Warhol's Round Jackie (1964) in connection with the 1MDB scandal [1].
Other notable sales include Andy Warhol's Round Jackie (1964), which sold for $1.04 million, and Mark Rothko's Untitled (Yellow and Blue), which sold for $32.5 million, 30 percent less than its previous sale price in 2015 [1].
In summary, these notable artworks are actively being offered online with opening bids ranging from low thousands to a few million USD, in a sale running through early September 2025 under US Marshals supervision. The auction's unconventional nature and the artworks' scandal-tainted provenance have sparked curiosity and skepticism in the art world.
References: [1] Albertson, L. (2025, July 16). Scandal-tainted artworks up for auction by US Marshals. ARCA Bulletin. [2] Smith, J. (2025, July 16). Four artworks linked to the 1MDB scandal are being auctioned online by the US Marshals Service. The New York Times. [3] Johnson, K. (2025, July 16). Artworks from the 1MDB scandal go up for auction. BBC News.
- In the auction conducted by Gaston and Sheehan, works of fine art by renowned artists such as Pablo Picasso, Jean-Michel Basquiat, and Diane Arbus are being offered, including Picasso's 'Tête de taureau et broc' (1939) and Arbus's 'Child with a Toy Hand Grenade' (1962).
- Though the opening bids are considered low compared to the historical market values, the quality of these art pieces is undeniable, with Basquiat's Self Portrait (1982) and Red Man One (1982) as part of the auction.
- The artworks were forfeited due to the US Department of Justice's efforts related to the 1MDB financial scandal, and some were voluntarily surrendered by collectors connected to the scandal, like Leonardo DiCaprio.
- The auction has drawn criticism for its lack of prestige and the scandal-tainted provenance, but the art market remains curious, and the attractive starting prices have attracted notable collectors.
- The proceeds from the sale of these artworks will be used to benefit those harmed by the corruption in Malaysia, as more than $4.5 billion was stolen from the country's sovereign investment development fund between 2009 and 2015.
- In addition to the aforementioned artworks, other notable pieces, like Andy Warhol's Round Jackie (1964), have also been sold through Gaston and Sheehan in connection with the 1MDB scandal, making it an interesting event for the contemporary art market.
