According to reports cited by investorsking.com, about USD 3 million of its money that was seized in the second government confiscation over money laundering and fraud claims remains frozen in two banks and 19 mobile money accounts (M-pesa pay bill numbers), which is currently presented before Kenya’s high court.
The USD 3 million funds seizure reportedly occurred in 2021 in August, less than two months after a Kenyan court froze USD 52.5 in 62 accounts linked to Flutterwave and six other companies that were the recipients of wire transfers from the fintech firm.
The companies affected include Boxtrip Travel and Tours, Adguru Technology, Bagtrip travels limited, Elivalat Fintech limited, Hupesi solutions, and Cruz Ride Auto.
Court documents revealed that investigations carried out by the country’s Assets Recovery Agency (ARA) pointed at Flutterwave as the main player in the alleged laundering scheme, as it wired money to these firms after receiving funds from foreign entities.
ARA alleged that Flutterwave concealed the nature of its business by allegedly providing a payment service platform with authorisation from the central bank of Kenya.
At the time, Flutterwave denied wrongdoing and said that all the transactions in question were verifiable. The case was however closed and USD 52.5 million was released after the ARA formally withdrew the case. Funds belonging to Flutterwave and its co-accused were released by the court.
Flutterwave welcomed the withdrawal of claims against the company by the Asset Recovery Agency (ARA). Meanwhile, recent reports reveal that although the Kenyan court released the funds after the close of the initial case, Flutterwave is still yet to access the funds.
In the second case, where Flutterwave, Adguru, and Hupesi solutions are the respondents, Kenyan high court judges set the next mention for 23 March 2023. While some parties predict that the case is unlikely to proceed to a full hearing, Flutterwave remains uncleared by the courts, delaying its prospects of getting a license to operate in Kenya.
The fintech company and African unicorn have faced a string of controversies over 2022, including claims of harassment, funds misappropriation, and mismanagement, Investors King mentions.
In February 2023, the fintech firm debunked the news that it was involved in a hack that resulted in more than USD 4.2 million missing from its accounts. The company further issued a statement that confirm that no user lost any funds, noting that it takes pride in the fact that its security measures were able to address the issue before any harm could be done to its users.
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