A Kenyan High Court granted the Asset Recovery Agency’s (ARA) plea to abandon its last Flutterwave action. This implies the corporation is out of Kenyan legal jeopardy. The court denied the agency’s July 2023 plea to discontinue its second lawsuit against the Nigerian fintech, resulting in this verdict.
There were claims of money laundering and fraud, which led to the court battle. Over $3 million was blocked for Flutterwave, Hupesi Solutions, and Adguru Technology Limited in August 2022. The ARA withdrew the prosecution after additional investigations found no wrongdoing by Flutterwave.
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The judge warned the agency to commence the case before completing its investigations. Declared, “It was inappropriate, negligent, reckless, and absurd for an investigative agency to commence such serious proceedings without having completed investigations.”
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This court found the withdrawal lawful after reviewing all the facts. He said the action was withdrawn.
The judge ordered the agency’s head and investigator to pay any civil liability “solely and personally” due to the poorly handled and pursued case.
He stated this was due to the irresponsible, reckless, inconsiderate, and impulsive way this case was researched, and these proceedings were started and driven.
Flutterwave, identified by the Central Bank of Kenya for operating without a remittance license, is relieved by the final case’s withdrawal. The corporation is expanding in Kenya and plans to center its East African operations in Nairobi.
Flutterwave rises after court ruling
In order to expand in East Africa, Flutterwave announced its desire to open an office in Nairobi, Kenya, earlier this year. In the past, ARA lawsuits made it take longer for the Kenyan government to give the payments giant its working license.
ARA held and released cash, including $52 million and $52.5 million when the first case fell, because it was having trouble in Kenya. The newly dropped case was the end of Flutterwave’s legal problems in the country.
The ARA gave $3 million to Flutterwave and other groups that were charged because there were no signs of wrongdoing. Once the court rules, the company can spend and grow in the area.