Flutterwave Scandal – Investigation of Money Laundering

The Assets Recovery Agency of Kenya had made some plans to take back the second case. This case was against a big fintech company in Africa named Flutterwave and the scandal was known as Flutterwave Scandal. This court ranks at no. 3 in terms of size. In August 2022, the agent had stopped around $3 million associated with Flutterwave Scandal.

Companies Associated with Flutterwave Scandal

The names of these companies are Adguru Technology Limited and Hupesi Solutions. These companies have been charged with fraud and money laundering. After 2 months, the money was taken away. The Assets Recovery Agency had frozen $52.5 million associated with Flutterwave Scandal. There were six companies in addition to it.

Legal Cases in Flutterwave Scandal

In every seizure, there was a suit on behalf of ARA. The initial case was taken away in March 2023.  Nixon Sifuna was the name of the judge from the High Court. He had cancelled the second suit. It is important to remember that ARA is an organization with financial support from the public on Flutterwave Scandal. There were no reasons behind the withdrawal. It consists of claims based on discussion.

Money Laundering in Flutterwave Scandal

The High Court of Kenya has stopped the transactions of Flutterwave Scandal. It had blamed the top fintech firm in Africa for money laundering. This is a firm in Nigeria. They were utilized as the channel for the laundering of money. They were working as the merchant services.

Deactivation of The Bank Account in Flutterwave Scandal

As per the report of Kenya Star, the court had sealed a large number of bank accounts for Flutterwave Scandal. The total number is 56. It was 7 billion Kenyan Shillings in total. It was approximately $59 million. The companies which were ruined include Bagtrip Travel Limited, Boxtrip Travel and Tours Limited, Elivalat Fintech Limited, and Cruz Ride Auto Limited. As per the report of the newspaper,  Simon Ngige has been one of the accused. This is a very important victory for the public. In 2022, it was associated with scandals.

Role of the Assets Recovery Agency of Kenya in the Flutterwave Scandal

The charges were abandoned in Kenya. There is something wrong in finance against Flutterwave scandal. The case began in the court in July 2022. Flutterwave had been accused in the court. There were signs of fraudulence in the Card. There were charges of money laundering. Finally, the court had deactivated around 6.2 billion Shillings. This money was under the control of the reputed fintech company. They were kept in different banks in Kenya. This was the Assets Recovery Agency of Kenya. According to ARA, the initial respondent of the bank accounts at Flutterwave Scandal got Billions. The financial scheme was suspicious. It was associated with money laundering.  This was kept in various bank accounts. The goal is to hide the origin and characteristics. It includes the location, appearance or movement of the funds.

Bloomberg Report on Flutterwave Scandal

According to Bloomberg, the high court of Kenya had abandoned the charges associated with Flutterwave Scandal. This was against the policy of Flutterwave. It was decided to abandon the charges. It came after two months for the same type of charges. They were kept in file against a company based in Nigeria named Korapay. This was the fintech startup. There were three companies in Nigeria. The charges were abandoned against those companies.

Charges of Fraud on Flutterwave

In 2022, Flutterwave Scandal became a portion of several scandals. It consists of the charge of ARA. The regulators were mentioned at the time of investigations. This was set up in the bank account of Fintech. From the operations, we have come across mysterious transactions. The funds were obtained from particular bodies of foreign origin.  There was a suspicion associated with it. This was made following the opinion of the regulator. There was the transfer of funds to associated accounts.

Project on Payment Service Website by Flutterwave

The ARA claimed that Flutterwave has been working on the payment service website. There was no authorization associated with Flutterwave Scandal. It was the Central Bank of Kenya which had made approval of the charge in July 2022. The Governor had claimed that the company did not get the licence to work as the provider of remittance. Alternatively, it could be a provider of payment services in Kenya. In this timeframe, CBK had given the instructions to the Chief Executive Officer on the financial institution in that area. They are going to stop working on the Flutterwave Scandal.

Future Plan of Flutterwave

The Flutterwave has a value of approximately $3 billion. There were plans for Flutterwave on the IPO. We have come across issues related to regulation. We have come across Flutterwave Scandal. They were associated with charges of harassment and insider trading. From this time, there were modifications in the organization due to the technology, finance and the operation of people.

Prediction of Analyst in Flutterwave Scandal

The analysts have faith in stopping previous scandals. The company had claimed that the investors associated with the public market were going to give priority to the development. There was a customer base for the ‘premium of the personal valuation of funding. This is going to control the operations of financial support. They might have cash at present or personal capital. The company is going to have plans in January 2023. It is related to the acquisition of the fintech Railsr of the UK.

There were 45 accounts which were frozen after the instruction of the High Court due to Flutterwave Scandal. The total number of wallets on mobile money was 10. There was a firm for financial technology in Nigeria. There was a fight against the allegations of Money Laundering.

Bank Account Frozen in Flutterwave Scandal

Alfred Mabeya was the name of the justice who had given orders. Flutterwave Payments Technology Ltd. will be frozen for Flutterwave Scandal. About 2468 Nigerian citizens were affected. The company had defrauded them. The total money in this scandal was $12.04 million or it was Sh1.6 billion.

Banks Associated with Flutterwave Scandal

There was a charge against Flutterwave from the citizens of Nigeria for the Flutterwave Scandal. The total number of financial companies associated with this scandal was 6. The funds of the company were held as the interested parties. The five banks were United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, and Ecobank. There was a company named Safaricom, which worked on pay bill numbers and the total number was 10.

Appointment of Chief Financial Officer in Flutterwave

Oneal Bhambani was given the appointment at Flutterwave, a payments startup in Nigeria. He became the Chief Financial Officer in June 2022. He became a part of a Payments company named Lagos. He changed his job from American Express. He had worked in the position of Vice President. He had also worked at Kabbage as Head of Capital Markets.

Flutterwave is a company based in Africa. There is a dispute in social media regarding the accusations related to sexual harassment and insider trading. There is a charge of lying under oath for Flutterwave Scandal.

Allegations Associated with Flutterwave Scandal

There were allegations associated with the reaction. It was in the report of the investigation. West Africa Weekly has an editor named David Hundeyin. The  Co-Founder of Flutterwave is named Olugbena Agboola. He is the Chief Executive Officer also. There are options in the stock presented to the previous employee.

Others were sharing the options of stock. This is the instrument of investment. Agboola along with Mr Ife Orioke, Chief Commercial Officer of Flutterwave. They were criticized for their powerful position. The sexual relationships were not right with the female colleague of the company.

Shareholders of Flutterwave Company

According to the report on Flutterwave Scandal, there were allegations that Agboola had formed the Flutterwave Chief Technology Officer. The name was Greg Agboola. They were shared 10% of shareholdings of Flutterwave. It was from the Co-Founders. They were shareholding of Adeleke Adekoya and Iyinoluwa Aboyeji. CEO had claimed about Flutterwave Scandal. He had been the Head of Digital Factory along with the Innovation at Access Bank PLC. He was a regional lender from Nigeria.

Effect of Insider Trading

From this amazing report, Hundeyin charged that in 2018, the United States Securities and Exchange Commission had claimed the practice of insider trading. He had called Aboyeji, Agboola, along with the CEO of Access Bank whose name is Herbert Wigwe. He had got a hearing.  As per the report of media, SEC have not approved. They had failed to provide insider trading. They were given the rejection for the US Freedom of Information Act, briefly known as FOIA. They had the request submitted from the journalist. It stated the issues associated with the privacy of Flutterwave Scandal.

Conclusion

Flutterwave had several controversies and they were associated with various occasions.  In July 2022, the Kenya High Court had sealed several accounts. They were associated with Flutterwave Scandal controlling more than 6.2Bn shilling in Kenya. There were charges related to the acquisition of money. We have observed fraud in credit card and money laundering.  Flutterwave were subject to several allegations. There were lawsuits for the obligations of the previous employee’s rights for the stocks. The workplace possesses a harmful culture of work. There were bullying and harassment.

FAQ

What is the Flutterwave Scandal?

Flutterwave had a complete journey for the reputed startup on being a fraud. The scandal was found in the company. It was associated with several oversights in regulation. They were a lot of financial impropriety.

What is the effect of Flutterwave Scandal?

The effect of Flutterwave scandal influenced the startups on fintech. They were on a low scale and it influenced the ecosystem.

Where are the headquarters and branches of Flutterwave?

The company named Flutterwave had its headquarters in California along with San Francisco. The operations of this company take place in Nigeria, Kenya, Uganda and South Africa. The company had its operations across seven countries in Africa.

Suggested by https://restofworld.org/2022/inside-the-scandal-at-flutterwave-nigerias-fintech-champion/

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