A Kenyan high Court has frozen another Sh400.6 million ($3.3 Million) in three bank accounts and 19 Safaricom M-Pesa paybill numbers belonging to Nigerian pan African start-up fintech, Flutterwave allegedly linked to card fraud and money laundering.
Justice Grace Nzioka said the company is prohibited from spending or transferring the funds.
“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,” Business Daily quoted the judge to have ruled.
Kenya’s Assets Recovery Agency (ARA), which is leading an investigation into the fintech firm, had filed to block the funds from being transferred. The agency also accused Flutterwave of money laundering and is seeking to have the frozen millions forfeited to the government.
The latest series of account freezes is coming barely a month since the sum of $52.5 million belonging to Flutterwave was frozen in several bank accounts operated by the fintech firm.
Recall that the company had vehemently denied the allegation of fraud, describing it as a calculated attempt to smear its reputation. The company also explained that it makes use of its financial partners to receive funds and make payments on behalf of merchants and corporates.
Since then, the Central Bank of Kenya waened that Flutterwave was not licensed to operate remittance services in the East African country. Governor Patrick Ngoroje of the Central Bank of Kenya also warned stakeholders to be wary of the company.
The fintech firm has not yet issued any statement in reaction to the latest development. We will keep you updated on this developing story
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