Kenya freezes $52 million linked to Flutterwave over money laundering

The debate over Flutterwave never seems to end. It had to deny reports linking it to a $52 million money laundering ring in Kenya on July 7. The funds were allegedly hidden in 62 bank accounts but were frozen.

The company distanced itself from the alleged crime in a statement on its website, claiming that it adheres to high regulatory standards and is audited by an unnamed reputable company.

“Our anti-money laundering practices and operations are regularly audited by one of the big four firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant,” the statement reads.

Kenya’s Assets Recovery Agency (ARA) said in court filings that the Nigerian unicorn was one of seven firms suspected of being used as conduits for card fraud in banks under the guise of providing merchant services.

Kenya’s Assets Recovery Agency (ARA) said in court filings that the Nigerian unicorn was one of seven firms suspected of being used as conduits for card fraud in banks under the guise of providing merchant services.

According to ARA, there was a deliberate attempt to conceal the source, location, disposition, and movement of funds that were wired to Flutterwave’s local bank accounts in multiple countries and then sent to the other six companies.

CEO of Flutterwave accused of harrassment and fraud.

Clara Wanjiku, a former Flutterwave employee, accused the company’s CEO, Olugbenga Agboola, of bullying, harassment, and fraud in April of this year. She claims she sued the company for wasting her time and mishandling her personal information.

“We tried to resolve this amicably, but it was impossible. They asked for $900,000 to quash the lawsuit. We refused because we didn’t believe $900,000 in damages represented the cost of the alleged negligence,” Agboola would later respond.

Wanjiku claimed two years ago that her phone number was used as the contact person in a Flutterwave fraud in which it allegedly processed payments for non-existent sex parties in Thika, a 35-minute drive from Nairobi. To participate, participants had to pay via Flutterwave.

Employees of Flutterwave have previously claimed that the company fosters a toxic office culture of impunity among senior personnel, as well as bullying and inappropriate relationships between managers and junior staff.

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