The Swedish giants forked out $1.5 million to sign the talented Ghanaian on a four-year deal in the summer this year.
But the promising career of the 23-year-old has been cut short after he was handed a two-year and eight months prison sentence for defilement.
Malmo feel the decision to buy the Ghanaian from Sirius IK was a bad one and want a refund of their money.
GHANAsoccernet.com can report the Swedish giants have sued Sirius, demanding a refund of their $1.5 million.
With the Ghanaian expected to serve his full sentence, Malmo are determined to reclaim their money.
Sarfo made 60 appearances for IK Sirius in the Superettan and 11 in Allsvenskan, scoring nine goals and providing 18 assists in total.
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