Flutterwave

Court Freezes 45 Bank Accounts Belonging To Nigerian Tech Company Flutterwave On Suspicion Of Money Laundering.

According to Business Daily Africa, this week High Court judge Alfred Mabeya issued orders freezing the accounts of Flutterwave Payments Technology after a group of 2,468 Nigerian nationals alleged the firm was used to defraud them of $12.04 million (Sh1.6 billion).

As disgruntled people and businesses start to queue for the billions the corporation has stowed away in local banks, a Nairobi court in Kenya has frozen 45 bank accounts and 10 mobile money wallets that belong to a Nigerian-owned financial technology firm fighting various money laundering claims.
According to Business Daily Africa, a group of 2,468 Nigerian nationals alleged the company exploited them to defraud them of $12.04 million (Sh1.6 billion). High Court judge Alfred Mabeya last week ordered the freezing of Flutterwave Payments Technology’s accounts.
Six regional lenders who are in possession of the company’s funds are named as interested parties in the Nigerian nationals’ lawsuit against Flutterwave.
The organisations include Safaricom, where Flutterwave manages 10 paybill numbers, and five banks: United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, and Ecobank.

The request has been classified as urgent. On 21.6.2023, the application will be served for directions. In the meantime, prayers 2 through 9 (requests for the freezing of bank accounts, bank keys, and mobile money wallets) are only permitted for a period of 14 days, according to Justice Mabeya.
Mahmoud Gitau Jillo Advocates have been selected to represent Flutterwave.
Although the amount of money in the bank accounts and mobile money wallets is not specified in the court documents, the Nigerians involved in the action estimate it to be in the billions.
The most recent instance puts more pressure on the IT company that has been attempting to obtain a license from the Central Bank of Kenya (CBK) despite growing legal battles and administrative obstacles.
Flutterwave and seven other businesses have been named as interested parties in a separate lawsuit filed by Hong Kong’s Lae Technologies against RemX Ltd., which is thought to have connections to the payments company. The lawsuit alleges a breach of contract.
Lae claims that RemX owes it at least $88 million (Sh12.2 billion) and is seeking to have multiple bank accounts frozen by the High Court of Nairobi.
The Assets Recovery Agency (ARA) was successful in 2022 in obtaining freezing orders against Flutterwave and eight other Nigerian businesses with Sh6.2 billion in bank accounts.
At the time, ARA was looking into the businesses for possible money laundering because it believed they were shifting criminal proceeds and using credit card fraud.

Avalon Offshore Logistics Ltd., Pumicells Ltd., OIT Africa Ltd., Multigate Ltd., RemX Investment Partners Ltd., and Kandon Technologies Ltd. are the companies.
However, the ARA dropped its lawsuit against the businesses in February 2023, allowing them to access the billions.
The US-based company Flutterwave Inc. has a subsidiary in Kenya called Flutterwave Payments Technology Ltd.
It is authorised to provide payment infrastructure and technology in California. However, at least ten African nations, notably Kenya and Nigeria, are where its principal operations are located.
Flutterwave Payments Technology is owned by California-registered Flutterwave Inc. (247,000 shares) and Olugbenga Agboola (3,000 shares), according to Business Registration Service documents.
The Chief Executive Officer of Flutterwave Inc. is Mr. Agboola. Along with Adeleke Adekoya and Iyinoluwa Aboyeji, he co-founded the business in 2016.
In an effort to benefit from their nation’s thriving gambling sector, the petitioners allegedly invested money in a sports betting platform known as 86 Football Technology Ltd.
In court documents, the betting company is also referred to as 86W, 86FB, and 86Z.
The business is accused of misleading naive bettors into thinking it used sophisticated scientific equations to predict possible sports outcomes.

Additionally, it stated that it was closely associated with the City Football Group, which owns a number of clubs, including Manchester City, the reigning English Premier League winner.
But it turned out that the betting company was a large Ponzi scheme.
In 2022, some Nigerian media sites stated that the pyramid scheme had defrauded Nigerians out of more than $400 million (Sh55 billion).
It is claimed that 86 Football Technology used Flutterwave to transfer billions of dollars of its wealth.
Justice Mabeya issued an order on June 7, 2023, directing the 2,468 victims of Ponzi schemes to deliver court papers to Flutterwave Payment Solutions and the six institutions holding their money.
On June 21, the parties will appear before Justice Mabeya to receive further instructions on how to handle the case. The judge will also determine if the freezing orders will be extended.
Last year, the victims from Nigeria were encouraged by Morris Ebitimi Joseph to join the ARA case. The victims’ claim was lost with the withdrawal of the ARA action.
In an effort to get their money back, the same group has also launched another lawsuit in Nigeria.
Bank accounts and mobile money wallets, according to Mr. Joseph, are among the Flutterwave assets that have been located.