More Trouble For Fintech StartUp, Flutterwave in Kenya As More Millions Belonging to Firm Are Frozen
- Nigerian fintech startup, Flutterwave has found itself in another round of trouble in the East African country of Kenya
- A high court in Kenya has asked that about $3.3 million found in the company's accounts be frozen
- The judge said the company is banned from using the funds as investigations into allegations of fraud against the company in Kenya heats up
A High Court in Kenya has frozen another $3.3 million belonging to Nigeria-owned, a pan-African fintech startup, Flutterwave.
Business Insider said the money was domiciled in three bank accounts and 19 M-Pesa paybill numbers.
Source: UGC
Justice Grace Nzioka said the firm is banned from spending or transferring the funds.
According to her, a preservation order prohibits the first respondent, agent, or representative from transacting, Withdrawing, transferring, or using any dealings concerning the money held in the account.
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Authorities seek to forfeit funds to the government
The Kenya Assets Recovery Agency (ARA) has sought an injunction to block the funds from being transferred.
Flutterwave has also been accused by the agency of money laundering and aiming to have the frozen millions forfeited to the government.
These new series of frozen accounts are coming barely one month after the sum of $52.5 million of the company’s money was frozen in several banks that Flutterwave operates.
Company rejects allegations of fraud
Flutterwave had vehemently denied the allegations of fraud and money laundering and described it as an attempt to bring the company to disrepute. It also explained that it uses its financial partners to receive funds and make payments on behalf of merchants and corporate organisations.
The Central Bank of Kenya had said the bank is not licensed to operate remittance services in the country and Patrick Ngoroje of CBK also warned the public to be wary of the firm.
Flutterwave has not made any statement regarding the latest development.
Kenyan court Freezes Flutterwave and several Nigerians’ accounts over alleged money laundering
Legit.ng reported that a Kenyan High Court seized Sh7 billion ($59 million), or N24.50 billion, from 56 accounts linked to fintechs, including Nigeria's Flutterwave, on the grounds that they were used as conduits for money laundering while offering merchant services.
This was revealed in an evening story by Kenya's The Star on Wednesday, July 6, 2022.
Flutterwave Payment Technology Limited, Boxtrip Travel and Tours Limited, Bagtrip Travel Limited, Elivalat Fintech Limited, Adguru Technology Limited, Hupesi Solutions, Cruz Ride Auto Limited, and one Simon Ngige are among the impacted fintechs.
Source: Legit.ng
