Flutterwave is again making news headlines, as a Kenyan court froze another $3.3 million over allegations bothering on card fraud and money laundering.
Just last month (July 2022), a Kenyan court froze the bank accounts of Flutterwave over a money laundering allegation.
The Nigerian firm, according to Kenyan authorities, was one of seven entities suspected to have been used as conduits for money laundering in the guise of providing merchant services. Although Flutterwave debunked the allegation, as it argued that there was existing proof that exonerate it from such misconduct.
However, in a new development, the court ordered that another $3.3 million belonging to the startup be seized.
“A Kenyan High Court has frozen another Ksh 400.6 million in three bank accounts and 19 Safaricom M-Pesa paybill numbers belonging to Flutterwave linked to card fraud and money laundering,” a Kenyan media outfit reported.
The court also barred the company from withdrawing, transferring, or dealing with the money, pending the outcome of the investigation of the Assets Recovery Agency (ARA’s).
“A preservation order be, and is hereby issued prohibiting 1st respondent or his agents or representative from transacting, withdrawing, transferring, using any other dealings in respect to the money held in the account,” Grace Nzioka, the judge was quoted to have ruled.