American authorities have alleged that more than $4.5 billion was embezzled in all from the fund, and used around the world on luxury yachts, paintings, highend properties and even to finance Wolf of Wall Street, the Hollywood film featuring Leonardo de Caprio.
The counts of abuse of power and criminal breach of trust are punishable by up to 20 years in jail each, while the money-laundering charges are punishable by up to 15 years each.
A Kuala Lumpur High Court granted an application by the prosecutors to withdraw all the charges during case management on Tuesday.
Kuala Lumpur High Court Judge Mohd Nazlan Mohd Ghazali ruled that he will deliver his verdict next month following the close of final submissions.
The move comes after Malaysia's ruling coalition has been having surprise weekend talks with opposition groups on forming a new government.
Both Najib and his wife have since been hit with multiple charges over the looting of the investment vehicle, but Rosmah's first trial centres on allegations she received bribes linked to a government project.
The multi-billion-dollar scam involves vast sums of money plundered from sovereign wealth fund 1MDB, allegedly involving former prime minister Najib and his cronies, triggering investigations around the world.
Najib has consistently denied any wrongdoing over the looting of 1MDB.
The new charges were added to the already existing 32 cases of corruption against Najib Razak with all of them being related to the 1MDB investigations.
He also insisted that he had no knowledge of that the money could be possibly from illegal activities like the misappropriation of 1MDB funds.
