By 
The Central Bank of Nigeria (CBN) has reportedly secured a federal high court’s order in Abuja to freeze accounts of four fintech companies for 180 days.
It was gathered that the accounts include that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.
The CBN, through its counsel, Chief Micheal Kaase Aondoakaa, SAN, told Justice Ahmed Mohammed of the Federal High Court, Abuja that
The CBN’s counsel, Chief Micheal Kaase Aondoakaa, SAN, leveled an accusation against the companies before Justice Ahmed Mohammed of the court that they were responsible for the Naira’s depreciation against United States dollars.
Aondoakaa explained that Nigeria’s currency downtrend is due to the foreign exchange deals carried out on the companies’ platforms.
The banking regulator also claimed that the online investment startups were operating as asset management companies without obtaining licenses.
According to the CBN, they were also alleged to be “utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.”
The apex bank said: “Rise Vest Technologies Limited was Incorporated In October 2018 with objects of technological and business consultancy. The shareholders of the company at incorporation were Eke Eleanya Urum and Rise Vest Technologies Limited (USA).
“Rise Vest Technologies Limited was Incorporated In October 2018 with objects of technological and business consultancy. The shareholders of the company at incorporation were Eke Eleanya Urum and Rise Vest Technologies Limited (USA).
“Our review revealed that the company consummated its asset management activities through its account 1017556580 with Zenith Bank Plc, which recorded a turnover of 1.97 billion between January 1, 2019 and April 27, 2021.
“Inflows to the account were mainly from retail investors through two Payment Service Solution Providers (PSSPe): Flutterwave (588.61 million) and Monnify (N967.58 million).
“Outflows from the account were to a PSSP – Paystack (500 00 million) and cryptocurrency traders Ike BuyCoins (N110.00 million) and Beltlum Venture (N350.00 million). Inquiries on the transactions confirmed that the transfers to Buycoins were for the purchase of cryptocurrency.”
Comments