More trouble for Flutterwave after Kenyan Court freezes fintech bank accounts
Other companies listed include Boxtrip Travel and Tours, Bagtrip Travel, Elivalat Fintech, Adguru Technology, Hupesi Solutions, Cruz Ride Auto and Simon Karanja Ngige, who is listed as a director of Cruz.
The accounts – held in Guaranty Trust Bank, Equity Bank and Ecobank – are worth around Ksh6.7 billion ($ 56.7 billion) of deposits in a total of 56 accounts. 52 of the accounts will belong to Flutterwave.
According to local media reports, ARA found that Flutterwave hid the nature of the business by allegedly offering a payment service platform without authorization from the Central Bank of Kenya – a requirement under section 12 of the National Payment System Act.
Instead, ARA believes that the accounts may have been used as channels for money laundering under the guise of providing trading services.
Latest claims
The news is the latest in a series of allegations that have hit Flutterwave in recent months, centering around the dubious business and personal practices of one of the fintech founders and current CEO, Olugbenga Agboola.
A recent study published in April this year by the fintech company by journalist David Hundeyin, claimed a phantom co-founder identity, insider trading, stock option fraud for employees, negligence, sexual harassment and bullying in the workplace.
“The Flutterwave story is incredible,” Hundeyin said in an interview with Africa report.
“But this is just the tip of the iceberg: no doubt other stories of fraud and abuse will continue to emerge from the Nigerian fintech landscape – it’s just a matter of time. On the outside, Nigerian fintech is an attractive prospect, so much money is flowing. into the sector arbitrarily. But we must soon get a correction, he says.
Agboola addressed the allegations in an email to employees a week later, stating that “the fact that the allegations of financial misconduct, conflict of interest and sexual harassment have been proven false or have already been reported, investigated and addressed by management means less to me than The reality is that these claims may have shaken your confidence in the company.
“As a founder and CEO, it is my responsibility to address any concerns you may have, and this will be a priority for me going forward.”
In February this year, Flutterwave raised $ 250 million in Series D financing, led by Tiger Global, and tripled the company’s value to $ 3 billion.
