Nigerian founded fintech startup, Flutterwave has found itself in turmoil again as it continues its pursuit for a license to operate in Kenya and East Africa. An additional sum of $3.3 million (Ksh 400.6 million) belonging to the fintech has been frozen by a Kenyan High Court.
This comes barely a month after the Pan-African fintech giant got caught up in a money laundering scheme in Kenya and had $60 million frozen in 52 different accounts. In response to that, The Central Bank of Kenya’s (CBK) governor Dr Patrick Njoroge went ahead to inform the public that Flutterwave and Chippercash are not licensed to operate in the country.
This time around, the funds were discovered in three banks accounts and 19 M-Pesa paybill numbers. 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.
Flutterwave has insistingly 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.
The fintech firm his yet to issue any statement in reaction to the latest development.