Blow for Flutterwave as Kenyan court declines request to withdraw case

Blow for Flutterwave as Kenyan court declines request to withdraw case

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#fintech
#payments
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Plans by Kenya’s Assets Recovery Agency (ARA) to withdraw its second case against African fintech giant Flutterwave have been shot down by the High Court, Kenya’s third highest court. In August last year, the agency had frozen $3 million belonging to Flutterwave, Hupesi Solutions, and Adguru Technology Limited on suspicion of money laundering and fraud. The funds seizure happened two months after the ARA froze another $52.5 million belonging to Flutterwave and six other companies. The ARA filed a suit after each seizure, the first of which was withdrawn formally in March this year.

Kenya's Assets Recovery Agency (ARA) had plans to withdraw its second case against African fintech giant Flutterwave, which involved the freezing of $3 million on suspicion of money laundering and fraud. However, the High Court rejected the request for withdrawal. The judge noted that the ARA, being a public-funded body, failed to provide reasons for the withdrawal, including details of any negotiations or settlements. The agency had accused Flutterwave's bank accounts of being used for money laundering, but the judge questioned the lack of evidence for the alleged crime. The ruling may further delay Flutterwave's prospects of obtaining a license to operate in Kenya. Flutterwave, a cross-border payment facilitator, has faced several controversies, including claims of harassment, misappropriation of funds, and mismanagement.


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