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A Nairobi court in Kenya has ordered the freezing of 45 bank accounts and 10 mobile money wallets owned by Flutterwave, a Nigerian financial technology firm that is currently grappling with multiple accusations of money laundering. As a growing number of individuals and companies assert claims against the company, these frozen accounts are believed to contain significant funds.
According to reports from Business Daily, High Court judge Alfred Mabeya issued the freezing orders after a group of 2,468 Nigerian nationals alleged that Flutterwave was involved in defrauding them of $12.04 million (approximately Sh1.6 billion). The affected Nigerians have filed a lawsuit against Flutterwave and have identified six financial institutions, including prominent banks like United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, Ecobank, and Safaricom, as parties with a stake in the case.
Justice Mabeya’s ruling stated, “The application is certified as urgent… The application will be served with directions on 21.6.2023. In the meantime, prayers 2-9 [seeking freezing of bank accounts, bank keys, and mobile money wallets] are granted for 14 days only.”
Flutterwave has engaged Mahmoud Gitau Jillo Advocates to represent the company in this legal matter.
While the exact monetary value in these frozen accounts has not been specified in the court papers, the plaintiffs believe that substantial amounts, possibly in the billions, are involved.
Another legal dispute has also emerged, involving Hong Kong’s Lae Technologies, which has sued Flutterwave and seven of its subsidiaries for alleged breach of contract. The Hong Kong company is seeking $88 million (approximately Sh12.2 billion) in compensation and is seeking to have several bank accounts frozen in anticipation of receiving this compensation.
In 2022, the Assets Recovery Agency (ARA) obtained freezing orders against Flutterwave and eight other Nigerian companies for allegedly being involved in money laundering activities. Flutterwave was accused of moving the proceeds of credit card fraud through its accounts. However, the ARA withdrew its case against these companies in February 2023, allowing them access to the previously frozen funds.
Flutterwave Payments Technology Ltd is a Kenyan subsidiary of US-based Flutterwave Inc. The company operates primarily in several African countries, including Kenya and Nigeria. It has been accused of being connected to a massive Ponzi scheme involving a sports betting platform known as 86 Football Technology Ltd.
The case involving the Nigerian nationals and Flutterwave is set to proceed in court, with the parties scheduled to appear before Justice Mabeya on June 21. The judge will decide whether to extend the freezing orders and offer further directions for the case.
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