A Kenyan court has frozen Ksh 400.6 million ($3.3 million) in Flutterwave’s account for alleged money laundering and card fraud. On August 25, the court ordered the Asset Recovery Authority (ARA) to prevent Flutterwave from transferring or withdrawing funds from three bank accounts – two at United Bank for Africa (UBA) and one with Access Bank – and 19 Safaricom accounts M- Pesa Billing Number.
The court froze funds at UBA totaling Ksh 110 million ($916,284) and Ksh 66.7 million ($556,622), Access Bank totaling Ksh 29.1 million ($242,399) and Safaricom M- Pesa is worth Ksh 68 million ($566,430), Ksh 112 million ($932,944) and Ksh 14.5 million ($120,783). This is not the first time this year. On a similar basis, ARA obtained a court order in July 2022 to freeze 6.2 billion shillings ($52.5 million) spread across 62 bank accounts of Flutterwave and seven other companies.
- Advertisement -
Now, according to documents filed by ARA, debts totaling 136 million shillings ($1.13 million) to one of Flutterwave’s UBA bank accounts including chargebacks, reversals and refunds , indicating that they were used for card fraud. The agency also said the dollar-to-shilling conversion on this account in a transaction worth Ksh 231 million showed a “layered and mixed pattern”.
Recall that in July 2022, Korapay, a Nigerian fintech startup, and Kandon Technologies, a cash management service provider based in Kenya, were charged with fraud and money laundering. The case will go to trial in November 2022.