Flutterwave, a Nigerian fintech startup, has finally been able to reclaim over $3 million of its frozen funds. This comes after Asset Recovery Agency (ARA) withdrew its money laundering charges case against the fintech in November last year.
The startup was founded in 2016 by Iyinoluwa Aboyeji, Olugbenga Agboola and Adeleke Adekoya, Flutterwave is headquartered in San Francisco and Lagos.
Flutterwave’s troubles started in 2022 when the Asset Recovery Agency (ARA) froze over $55 million of the company’s funds, after it alleged that it was engaged in fraudulent activities and money laundering. A significant portion of the frozen funds was released in March 2023. However, an amount of $3 million remained inaccessible due to the ARA’s objections.
In January 2024 Judge Nixon Sifuna who sits in the Anti-Corruption High Court ruled in favor of Flutterwave, criticizing the ARA’s attempt to withdraw the final case without presenting any concrete evidence against the company. The Judge deemed the ARA’s actions an “abuse of court procedure” and ordered the release of the remaining fund.
With this legal hurdle finally cleared, Flutterwave will now be able to focus on securing a payments and remittance license in Kenya. This license will authorize the company to directly handle and settle payments within the Kenyan market, expanding its reach and solidifying its position in the region.
While Kenya, Nigeria, South Africa, and Egypt are Flutterwave’s key markets, the company has strategically expanded its footprint to include Rwanda, Ghana, Cameroon, Cote d’Ivoire, and Senegal.