Federal Government Set to Sell Artworks from Jean-Michel Basquiat, Pablo Picasso, and Diane Arbus, Acquired through FundsLinked to 1MDB Controversy
The US Marshals Service is conducting an online auction of four artworks connected to the 1MDB scandal, originally owned by the fugitive financier Jho Low and previously gifted to Leonardo DiCaprio. The auction, handled by Gaston and Sheehan, a Texas-based auction house contracted by the US government, started on July 16, 2025, and will conclude on September 4, 2025.
The artworks up for auction are:
- Jean-Michel Basquiat’s Self Portrait (1982)
- Jean-Michel Basquiat’s Red Man One (1982)
- Pablo Picasso’s Tête de taureau et broc (1939)
- Diane Arbus’s Child with a Toy Hand Grenade (1962)
Starting bids for the pieces are:
- Red Man One (Basquiat): US$2.975 million
- Self Portrait (Basquiat): US$850,000
- Tête de taureau et broc (Picasso): US$850,000
- Child with a Toy Hand Grenade (Arbus): US$4,400
The auction is less prestigious than previous sales for such exceptional works, but the controversial provenance due to their connection to Jho Low and his links to the film The Wolf of Wall Street production may discourage some serious collectors. Buyers are exempt from paying additional premium fees.
The Picasso painting was gifted to Leonardo DiCaprio in January 2014 with a handwritten note signed "TKL," Low's initials. DiCaprio surrendered all three artworks to the US government after the Picasso and Basquiat were located in Switzerland in 2017.
The US Department of Justice states that Picasso's Tête de taureau et broc (1939) was acquired in 2014 using funds from a diverted bond sale in 2013. Basquiat's Red Man One (1982) previously sold for $3.5 million with fees at Sotheby's Contemporary evening sale in New York in May 2009. Diane Arbus's Child with a Toy Hand Grenade (1962) was purchased from Cinema Archives for $750,000.
The US Justice Department repatriated approximately $1.4 billion as of June 2019. Proceeds from the sale of assets connected to the 1MDB case will benefit people who were harmed by the corruption in Malaysia, according to a Justice Department spokesperson.
The art world has noted the relatively low opening bids compared to past sales for such exceptional works. However, the auction’s less prestigious online platform and the scandalous background may discourage some serious collectors.
[1] Lynda Albertson, the CEO of the Association for Research into Crimes Against Art (ARCA), first reported news of the US Marshals auction. [2] The previous art auction at Gaston and Sheehan was first reported by Greg Allen. [3] Gaston and Sheehan, an auction house in Pflugerville, Texas, has been contracted by the US government to sell these artworks. [4] The starting bid for Picasso's Tête de taureau et broc on the US Marshals Art Auction was $850,000. [5] The starting bid for Child with a Toy Hand Grenade on the US Marshals Art Auction was $4,400. [6] Andy Warhol's Round Jackie (1964) sold for $1.04 million, slightly below the $1.055 million Low paid for it in 2013. [7] Red Man One was purchased by Malaysian businessman and fugitive Low Taek Jho, also known as Jho Low, and gifted to actor and art collector Leonardo DiCaprio. [8] Low is currently wanted in several countries, including by Interpol, for his key role in the 1MDB scandal. [9] More than $4.5 billion was stolen from Malaysia's sovereign investment development fund between 2009 and 2015, according to the US Justice Department. [10] Mark Rothko's Untitled (Yellow and Blue) sold for $32.5 million in November 2020, 30 percent less than its high estimate of $35 million.
- The US Marshals Service is conducting an online auction for four artworks linked to the 1MDB scandal, originally owned by fugitive financier Jho Low and previously gifted to Leonardo DiCaprio.
- Gaston and Sheehan, an auction house in Pflugerville, Texas, has been contracted by the US government to sell these artworks, which include Jean-Michel Basquiat’s Self Portrait (1982) and Red Man One (1982), Pablo Picasso’s Tête de taureau et broc (1939), and Diane Arbus’s Child with a Toy Hand Grenade (1962).
- The auction, handled by Gaston and Sheehan, started on July 16, 2025, and will end on September 4, 2025, with starting bids for the pieces ranging from $4,400 for Child with a Toy Hand Grenade to $2.975 million for Red Man One.
- Some serious collectors may be deterred by the controversial provenance of the artworks, given their connections to Jho Low and his links to the film The Wolf of Wall Street production.
- Contemporary art market insights suggest that the auction's relatively low opening bids compared to past sales for such exceptional works may be explained by the auction’s less prestigious online platform and the scandalous background.
- The Picasso painting, Tête de taureau et broc (1939), was gifted to Leonardo DiCaprio in January 2014 with Low's initials, "TKL," written on a note.
- DiCaprio surrendered all three artworks to the US government after the Picasso and Basquiat were located in Switzerland in 2017.
- The US Department of Justice states that Picasso's Tête de taureau et broc (1939) and Basquiat's Red Man One (1982) were acquired using diverted funds from a 2013 bond sale and 2014 purchases, respectively.
- Proceeds from the sale of assets connected to the 1MDB case will benefit those harmed by the corruption in Malaysia, according to the Justice Department.
- The art world continues to follow the auction proceedings and its impact on the general-news and crime-and-justice industries, as well as the finance and business sectors, given the magnitude of the scandal and the global reach of art markets.
