Flutterwave, a unicorn tech company which is run by Gbenga Agboola, is involved in yet another legal dispute as a result of a Nairobi court’s order to freeze 45 of the company’s bank accounts and 10 of its mobile money wallets.
This latest court case adds to the growing number of accusations of money laundering against the financial technology company as people and businesses try to get their hands on billions of dollars that are said to be hidden in local banks.
Just recently, High Court Judge Alfred Mabeya issued the freezing order in reaction to a lawsuit filed by 2,468 Nigerians who say that Flutterwave stole Ksh1.6 billion ($12.04 million) from them.
Six financial institutions are named as interested parties holding Flutterwave’s funds in the lawsuit, including United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, Ecobank, and Safaricom.
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Mahmoud Gitau Jillo Advocates represents Flutterwave in the case.
In 2022, the Assets Recovery Agency (ARA) froze the accounts of Flutterwave and eight Nigerian firms, including RemX Capital Ltd., Avalon Offshore Logistics Ltd., and Kandon Technologies Ltd., holding KSh 6.2 billion ($52.5 million).
The companies were suspected of money laundering and credit card fraud by ARA.
The businesses were able to receive the funds in February 2023, when the ARA abandoned its case against them.
Hong Kong’s Lae Technologies sued Flutterwave and seven subsidiaries
Hong Kong’s Lae Technologies is also in a legal battle. It has sued Flutterwave and seven of its subsidiaries for breaking a contract.
Lae Technologies wants at least $88 million in compensation and has asked the Nairobi court to freeze several bank accounts connected to Flutterwave and its companies.
The Hong Kong company says that these accounts are worth a lot more than what they are asking for in pay.
Most people agree that Flutterwave, which was started in 2016 by Gbenga Agboola and Iyinoluwa Aboyeji, is Africa’s most valuable tech company.
In 2022, the company’s Series-D funding round brought in $250 million. This brought the company’s value to over $3 billion and made Agboola a major player in the African fintech scene.
Flutterwave has been at the forefront of driving innovation and promoting technological progress in Africa and other developing areas. There have been accusations of financial wrongdoing against the company, including money laundering, insider trading, fraud, and perjury.
In January of this year, the Kenyan High Court froze $52.5 million in 62 bank accounts that belonged to Flutterwave. The money was thought to be from card fraud and moving money.
Even with these problems, Flutterwave has stuck to its promise to keep client money safe. This year, the company quickly denied media claims that its accounts had been hacked and N2.9 billion ($6.3 million) stolen.
As Flutterwave fights these legal battles, it remains to be seen how the company will get past these problems and stay true to its mission of giving customers and businesses in Africa and developing markets access to unlimited possibilities.