Flutterwave Nairobi Sanctioned For Money Laundering. Court Suspends Proceedings of the 45 Bank Accounts of Flutterwave.
A Nairobi court has frozen 45 bank accounts and 10 mobile money wallets linked to a Nigerian-owned financial technology firm facing various money laundering claims, as disgruntled individuals and businesses line up for billions stored in local institutions.
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Flutterwave payments frozen last week by High Court judge Alfred Mabeya after a group of 2,468 Nigerian nationals alleged the firm was used to defraud them of $12.04 million (Sh1.6 billion).
The Nigerian nationals have filed a lawsuit against Flutterwave, listing six local lenders as interested parties. United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, and Ecobank are among the institutions.
The application has been certified as urgent, and will be served for directions. Meanwhile, prayers 2-9 are requesting the suspension of bank accounts, bank keys, and mobile money wallets are only granted for 14 days,” Justice Mabeya decided.
Mahmoud Gitau Jillo Advocates has been chosen to represent Flutterwave in the case. While the court filings do not identify the amount of money in the bank accounts and mobile money wallets, the Nigerians involved in the lawsuit think it is in the billions.
The latest case adds to the pressure on the IT firm, which has been fighting for a license from the Central Bank of Kenya (CBK) despite growing court battles and regulatory obstacles.
In a second case, Hong Kong’s Lae Technologies has named Flutterwave and seven other companies. Lae has asked the Nairobi High Court to freeze various bank accounts in expectation of receiving at least $88 million (Sh12.2 billion) that it claims RemX owes it.
The Assets Recovery Agency (ARA) successfully filed freezing orders against Flutterwave and eight other Nigerian companies with Sh6.2 billion in bank accounts in 2022.
ARA was investigating the companies at the time for possible money laundering, believing they were transporting criminal proceeds and engaged in credit card fraud.
RemX Capital Ltd, Pumicells Ltd, OIT Africa Ltd, Multigate Ltd, RemX Investment Partners Ltd, Avalon Offshore Logistics Ltd, and Kandon Technologies Ltd are the companies involved.
However, the ARA dismissed its lawsuit against the corporations in February 2023, allowing them to access the billions.
Flutterwave Payments Technology Ltd is a Kenyan subsidiary of Flutterwave Inc., which is situated in the United States.
It is a payment technology and infrastructure provider registered in California. However, its principal operations are concentrated in at least ten African nations, including Kenya and Nigeria.According to Business Registration Service data, Flutterwave Payments Technology is owned by Flutterwave Inc. (247,000 shares) and Olugbenga Agboola (3,000 shares).
Agboola is the president and CEO of Flutterwave Inc. In 2016, he co-founded the company alongside Iyinoluwa Aboyeji and Adeleke Adekoya.
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According to court filings, the petitioners invested in a sports betting website called 86 Football Technology Ltd in order to profit from their country’s thriving gambling business.
The firm is accused of duping unsuspecting gamblers into believing that it is real.
