Flutterwave, a Nigerian fintech startup, has partnered with the Economic and Financial Crimes Commission (EFCC) to establish a cybercrime research center. This strategic initiative aims to intensify the fight against internet crime, enhance the security of business transactions, and provide opportunities for Nigerian youth. The partnership was formalized through a Memorandum of Understanding (MoU) signed […]
Bitcoin News
Nigerian Fintech Firm Flutterwave Confirms Hacking Attempt, Says Users’ Funds Safe
The Nigerian fintech firm Flutterwave claimed on May 16 that it had foiled an attempt to breach its payments platform. Flutterwave asserted that the “unauthorized activities inconsistent with usual customer behavior” did not compromise users’ funds or data confidentiality. According to one report, over million was siphoned from Flutterwave following a cyberattack in April. […]
Bitcoin News
Kenyan High Court Unfreezes $3 Million Belonging to Nigerian Fintech Giant Flutterwave
A recent ruling by the Kenyan High Court in favor of the Nigerian fintech startup Flutterwave will see it finally get access to million which has been frozen since July 2022. The judge slammed the Assets Recovery Agency for continuing to hold onto the funds even after it withdrew its suit against Flutterwave.
Flutterwave’s Legal Battle Against Kenyan Anti-Graft Agency Ends
A Kenyan court has reportedly issued an order to unfreeze million belonging to the Nigerian fintech startup Flutterwave and two associated companies. This ruling is expected to put an end to a protracted legal battle over the frozen funds, which persisted even after the anti-graft agency Assets Recovery Agency (ARA) withdrew its lawsuit against the startup.
As reported by Bitcoin.com News in July 2022, over 50 bank accounts containing funds linked to Flutterwave were frozen at the request of the Kenyan anti-corruption agency. The ARA sought the freeze order following an investigation that tied these bank accounts to “suspicious activities.” At the time, the cumulative balance across these accounts exceeded million.
Flutterwave has repeatedly denied any wrongdoing and in early 2023, the startup’s CEO reportedly went to Kenya to seek the funds’ release. However, about a month later, the first case against the startup was withdrawn which resulted in the release of more than million. The ARA nevertheless continued to hold on to some of the remaining funds drawing the ire of the judge.
“Such a litigation facade or decoy is inappropriate, an abuse of the court process, and an attempt at squandering the scarce judicial time,” the Nairobi judge reportedly said.
According to the report, Flutterwave will now attempt to get a Kenyan payments and remittance license.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
Nigerian Fintech Flutterwave Secures Money Transfer Licenses in 13 US States
The Nigerian fintech unicorn revealed on Dec.7 that it has obtained money transfer licenses in 13 U.S. states. Flutterwave’s partnership with a licensed financial institution also means that it can now serve customers in 29 states in the U.S. Flutterwave CEO suggested that the fintech hopes to expand its footprint in the country by securing more such licenses.
Flutterwave Serves Clients in 29 States
The Nigerian fintech unicorn, Flutterwave, recently announced that it has secured money transfer licenses in 13 U.S. states. The licenses enable Flutterwave users to enjoy faster, cheaper, and more secure transfer of money from the United States to Africa and back. Flutterwave’s partnership with a licensed financial institution also means that it can now serve customers in 29 states in the U.S.
According to Flutterwave’s Dec. 7 statement, the licenses obtained by the fintech not only enable its sending application but also enterprises that use its platform for last-mile payout globally.
Stephen Cheng, the executive VP for Global Expansion and Partnership, remarked on the fintech’s latest milestone, saying, “Getting these licenses expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters trust of regulators, partners, and customers. We’re growing and are committed to servicing customer needs in as many geographies as possible with a significant African diaspora.”
Olugbenga Agboola, the founder and CEO at Flutterwave, said that getting licensed by U.S. regulators moves the fintech closer to its goal of connecting Africa to the world and vice versa by simplifying payments. Agboola also revealed that Flutterwave hopes to expand its footprint in the country by securing more such licenses.
In addition to receiving approvals from U.S. regulators, Flutterwave has been working with African regulators. This has culminated in the fintech getting approved by the Nigerian and Malawian central banks.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
Nigerian Fintech Flutterwave Obtains Two Licenses From Rwandan Central Bank
Flutterwave, the Nigerian fintech giant, recently said it had obtained two licenses from the National Bank of Rwanda, which allow it to offer its services to more than 13 million people living and working in Rwanda. According to Flutterwave’s representative in the country, the two licenses make it possible for her company “to provide safe, secure and seamless payment services for individuals and businesses in Rwanda.”
Helping Individuals and Businesses in Rwanda
The Nigerian fintech giant Flutterwave announced on March 15 that it has secured two additional licenses in Rwanda, that will help it expand its operations in East Africa. The licenses — known as the electronic money issuer and remittance licenses — were issued by the National Bank of Rwanda. They enable the fintech firm to offer its services to more than 13 million people living and working in Rwanda.
According to a statement released by the fintech, possessing the two licenses also allows Flutterwave to deploy its range of products that include cross-border money transfer solutions. Products including Flutterwave’s store, payment links, invoices, and checkout will also become available to individuals and businesses in Rwanda.
Commenting on the news, Olugbenga Agboola, the founder and CEO at Flutterwave, said the granting of the licenses shows the fintech’s commitment to its vision of linking Africa through payments. The CEO also explained why Rwanda is an important market for Flutterwave. He said:
“As a country well known for fostering innovation and promoting the use of digital technology, Rwanda has always been important to our expansion plans in East Africa. We are delighted for the vote of confidence in being granted these licenses,” Agboola said.
Leah Uwihoreye, the fintech’s East Africa Regional Lead, said the two licenses make it possible for her company “to provide safe, secure and seamless payment services for individuals and businesses in Rwanda.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Nigeria Fintech Flutterwave Denies Client Account Hacking Reports
The Nigerian fintech Flutterwave has rejected reports suggesting that hackers have stolen as much as .3 million from user accounts. The fintech firm said a routine check of its transaction monitoring system helped to uncover “an unusual trend of transactions on some users’ profiles.”
Motion to Freeze
The Nigerian fintech unicorn, Flutterwave, has said reports suggesting that hackers stole approximately .3 million from client accounts are not true. In a statement issued on March 5, the fintech insisted that no user lost any funds and that corrective action taken had in fact enabled it to “address the issue before any harm could be done to our users.”
Flutterwave’s statement denying the hacking claims followed a Techpoint report which suggested that as much as .3 million (2.9 billion naira) had been siphoned from users’ accounts. According to the report, the hacking incident is thought to have occurred in early February and Flutterwave is believed to have reacted to this by filing a motion to freeze accounts in as many as 27 financial institutions.
While the statement suggested that Flutterwave is working with “other financial institutions and law enforcement agencies to keep our ecosystem safe and secure,” the fintech firm however insisted it only took action after detecting anomalies on some users’ accounts.
“During a routine check of our transaction monitoring system, we identified an unusual trend of transactions on some users’ profiles. Our team immediately launched a review (in line with our standard operating procedure), which revealed that some users who had not activated some of our recommended security settings might have been susceptible,” the fintech firm explained.
Flutterwave added that the preemptive steps it took helped it to address the issue before “any harm could be done to our users.”
You are popular I will post evidence here, A hack confirmed by a flutterwave staff, my bank confirming flutterwave contacted them, flutterwave submitting a petition with a lawyer whose seal has expired since 2017. Their statement and Affidavit swearing this true, as oath. pic.twitter.com/zEHVMCgQOn
— Ufedo (@UfedoDavid) March 5, 2023
Meanwhile, on Twitter, some users rejected Flutterwave’s version of what transpired and have insisted that the hacking incident is true. One user, known as Alex Onyia, tweeted that Flutterwave had been hacked by Omar Edewor Trades and that millions of naira had been stolen from customer accounts. Another user, Ufedo, shared “evidence” which proved that the hacking incident did occur.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
Report: Flutterwave CEO in Bid to Recover Millions Stuck in Kenya
According to reports, the CEO and co-founder of the Nigerian fintech Flutterwave, Olugbenga Agboola, recently visited Kenya where he sought to convince the country’s monetary authorities to grant the firm access to funds that have been blocked since July 2022. Agboola claimed that his firm had “instituted a number of changes over the past year to ensure all internal governance structures are best-in-class.”
Money Laundering Allegations
More than six months after a Kenyan High Court granted an order to freeze bank accounts belonging to the Nigerian fintech unicorn Flutterwave, Olugbenga Agboola, the co-founder and CEO of the startup, is seeking to convince the Central Bank of Kenya to end the embargo. In addition, Agboola reportedly used his recent trip to the East African state to push for the licensing of his firm.
As previously reported by Bitcoin.com News, more than 50 Flutterwave bank accounts holding funds equivalent to nearly million were frozen at the behest of the Asset Recovery Agency (ARA). The agency accused Flutterwave of laundering money and of flouting Kenya’s national payment system laws.
However, according to a Business Daily report, the ARA has withdrawn from the court case that won it the freeze order in December 2022. The report added that the ARA’s withdrawal, as well as the recent dismissal of a case brought against Flutterwave by some 2,000 disgruntled Nigerians, raised the startup’s chances of regaining access to the blocked funds.
Meanwhile, in his comments relating to the Kenyan trip, Agboola reportedly said:
CBK invited us in December to reapply for a money remittance and payments service provider licenses. Kenya is the bedrock of mobile money. We have seen the gap and have raised capital to invest here. Without Nairobi, building a global mobile money payments system is not possible.
Concerning allegations that Flutterwave’s Kenyan operations were not sanctioned, Agboola insisted the startup has always sought to comply with the country’s laws. He revealed that the startup was bringing in qualified global experts to help strengthen Flutterwave’s processes.
Fintech Growth and Regulatory Challenges
In another report, Agboola is quoted suggesting that Flutterwave and other Africa-based fintech firms’ accelerated growth often unnerves regulators. This, in turn, leads to increased scrutiny and suspicion.
However, to assuage the concerns of skeptical regulators, Agboola reportedly said the fintech had “instituted a number of changes over the past year to ensure all internal governance structures are best-in-class.” Furthermore, Flutterwave has hired experienced individuals such as Emmanuel Efenure from Mastercard to help strengthen the fintech’s risk and governance, Agboola added.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.