This was after a group of 2,468 Nigerian nationals claimed the firm was used to defraud them of $12.04 million (Sh1.6 billion).

Following these allegations, a Nairobi court in Kenya has frozen 45 bank accounts and 10 mobile money wallets belonging to a Nigerian-owned financial technology firm. Flutter wave has been battling multiple money laundering allegations, as scorned individuals and companies begin to queue up for billions the firm has stashed away in local banks.

The court order revealed  that the  alleged victims have sued Flutterwave, with claims that there are  six local lenders that hold the company’s funds as interested parties. It also identified some  financial institutions which include United Bank of Africa, Access Bank, Guaranty Trust Bank, Equity Bank, and Ecobank  and Safaricom. These banks act as local lenders that hold the company’s funds where Flutterwave operates 10 paybill numbers.

“The application is certified as urgent. The application will be served for directions on 21.6.2023. In the meantime, prayers 2-9 [seeking freezing of bank accounts, bank keys and mobile money wallets] are granted for 14 days only,” Justice Mabeya ruled.

The recent unfolding of the case has  mounted much  pressure on the tech firm which has been pushing for a Central Bank of Kenya (CBK) license amid mounting court fights and regulatory hurdles.

Also, in another development, Hong Kong’s Lae Technologies has also listed Flutterwave and seven other companies as interested parties in an alleged breach of contract with RemX Ltd which is suspected to have links with the payments firm.

Lae wants the High Court in Nairobi to freeze several bank accounts in anticipation of getting at least $88 million (Sh12.2 billion) that it says RemX owes it.

Recall that in 2022, the Assets Recovery Agency (ARA) demanded the closing down of accounts of Flutterwave and eight other Nigerian companies whose bank accounts held  6.2 billion.

Although Flutterwave denied the fraud and money laundering claims leveled against it by Kenya’s Asset Recovery Agency, which investigates and recovers proceeds of crime.

However, in February 2023, the ARA withdrew its case against the companies, giving them access to the billions.

Statement on the  court documents revealed that the petitioners pumped money into a sports betting platform, registered as 86 Football Technology Ltd, in an attempt to profit from their country’s vibrant gambling industry. The betting company is also referred to in court papers as 86W, 86FB and 86Z.

It was claimed that the company was accused of duping gullible punters into believing that it used complex scientific formulae to calculate potential football outcomes. It also claimed to have close links with the City Football Group, which controls several clubs including English Premier League champions Manchester City. But the betting firm turned out to be a massive Ponzi scheme.

Several Nigerian media outlets reported in 2022 that the pyramid scheme had taken more than $400 million (Sh55 billion) from Nigerians.

86 Football Technology is alleged to have moved billions of its loot through Flutterwave.

It is against all these conditions that on June 7, 2023, Justice Mabeya ordered the 2,468 Ponzi scheme victims to serve Flutterwave Payment Solutions and the six institutions holding their funds with the court papers.

The parties will appear before Justice Mabeya on June 21 for further directions on how to proceed with the case. The judge will also decide whether to extend the freezing orders.

Morris Ebitimi Joseph led the Nigerian victims in joining the ARA case last year. When the ARA case was withdrawn, the victims’ claim died with it.

The same group has also filed another case in Nigeria seeking to recover their money.

Mr Joseph says the bank accounts and mobile money wallets are among the Flutterwave assets that have been traced.