The fresh revelations on 1MDB, as well as Penang Chief Minister Lim Guan Eng's corruption charges, make a snap election in Penang necessary, said former de facto law minister Zaid Ibrahim.
In his latest blog post, he said the people of Penang should have their say as the moral authority and effectiveness of both Prime Minister Najib Abdul Razak and Lim are now in question.
Even though the US Department of Justice's lawsuit to retrieve assets purchased with 1MDB funds did not name Najib, Zaid said it clearly implicated him.
"The attorney-general of Malaysia found it necessary to charge Lim for corruption for buying a house at a cheaper price than market rate while clearing the prime minister of all crimes.
"There is no better platform for the people of Penang to have their say on this matter than in an election," said Zaid.
But he added that the "proper thing to do" was for BN to elect a new leader and subsequently call for a general election.
A state election was a good alternative to that, said Zaid, even though Lim yesterday had said more time was required for consultation.
Zaid urged DAP's allies to support a snap election, saying that they should set aside their fears of another defeat, and to have faith that the people knew right from wrong.
"There is an urgent need for political transformation in the country, and that can only happen if the voters are willing and able to have their say against their leaders," he said.
The US Department of Justice, in the lawsuits filed in California yesterday, seeks to seize 17 assets including luxury properties and a jet.
The court documents allege that properties were purchased in the US, Switzerland and the United Kingdom, from funds diverted from 1MDB.
The court documents said the funds were diverted from 1MDB "for the personal benefit of the co-conspirators (and) their associates".
1MDB maintained no interests in those assets and saw no returns on those investments, the lawsuits also stated.
The US deputy director of the Federal Bureau of Investigation Andrew McCabe, in a press conference organised by the US Department of Justice, said the Malaysian people were defrauded on an enormous scale in a scheme with tentacles that reached around the world.