Nigerian-Owned Tech Firm, Flutterwave Accounts Frozen in Money Laundering Case By Court

Nigerian-owned financial technology firm, Flutterwave Payments Technology, is facing multiple money laundering allegations, resulting in the freezing of 45 bank accounts and 10 mobile money wallets by a Nairobi court in Kenya. The court order came after 2,468 Nigerian nationals filed a lawsuit claiming that Flutterwave defrauded them of $12.04 million. The individuals named six local lenders, including United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, Ecobank, and Safaricom, as interested parties holding Flutterwave’s funds.

Flutterwave has engaged Mahmoud Gitau Jillo Advocates to represent them in the case. Although the exact amounts in the frozen accounts and wallets were not disclosed in the court papers, the Nigerian claimants believe they amount to billions. This legal action further intensifies the pressure on Flutterwave, which has been seeking a license from the Central Bank of Kenya (CBK) amidst ongoing court battles and regulatory challenges.

Additionally, Flutterwave and seven other companies, including RemX Ltd, have been listed as interested parties in a breach of contract dispute filed by Hong Kong’s Lae Technologies. Lae Technologies seeks to freeze several bank accounts in anticipation of recovering $88 million allegedly owed to them by RemX, suspected to have links with Flutterwave.

In 2022, the Assets Recovery Agency (ARA) obtained freezing orders against Flutterwave and eight other Nigerian companies, freezing bank accounts totaling Sh6.2 billion. The ARA was investigating these companies for alleged money laundering, suspecting their involvement in moving proceeds of crime and engaging in credit card fraud. However, in February 2023, the ARA withdrew its case against these companies, granting them access to the frozen funds.

Flutterwave Payments Technology Ltd is a subsidiary of US-based Flutterwave Inc., registered in California as a payment technology and infrastructure provider. Its operations span across at least ten African countries, including Kenya and Nigeria. Business Registration Service records reveal that Flutterwave Payments Technology is owned by California-registered Flutterwave Inc. (247,000 shares) and Olugbenga Agboola (3,000 shares), the CEO of Flutterwave Inc. The company was co-founded in 2016 by Agboola, Iyinoluwa Aboyeji, and Adeleke Adekoya.

The court documents indicate that the Nigerian claimants invested money in a sports betting platform known as 86 Football Technology Ltd (also referred to as 86W, 86FB, and 86Z). The platform promised substantial returns through a purportedly scientific approach to predicting football outcomes and claimed associations with the City Football Group. However, it turned out to be a large-scale Ponzi scheme that allegedly siphoned over $400 million from Nigerian victims. The Ponzi scheme is accused of using Flutterwave to facilitate the movement of their illicit funds.

On June 7, 2023, Justice Mabeya directed the 2,468 victims of the Ponzi scheme to serve court papers to Flutterwave Payment Solutions and the six institutions holding their funds. These parties will appear before Justice Mabeya on June 21 to determine further directions for the case, including a decision on extending the freezing orders. Morris Ebitimi Joseph, who led the Nigerian victims in joining the ARA case, stated that the bank accounts and mobile money wallets are among the traced assets linked to Flutterwave. The victims have also filed a separate case in Nigeria to recover their money.