Kenyan High Court rules in favor of Flutterwave, unfreezes $3 million
The Nigerian fintech startup Flutterwave and its associated companies have finally won their legal battle to unfreeze $3 million, which has been held by the Kenyan anti-graft agency since July 2022. The Assets Recovery Agency (ARA) withdrew its lawsuit against Flutterwave, but still held onto the funds. The judge criticized the ARA for its actions, calling it an abuse of the court process. This ruling puts an end to the long-standing struggle over the frozen funds.
Background: Frozen funds and investigation
In July 2022, over 50 bank accounts linked to Flutterwave were frozen by the Kenyan anti-corruption agency. The ARA claimed that these accounts were linked to suspicious activities. The cumulative balance across these accounts exceeded $60 million.
Flutterwave’s denial and partial release of funds
Flutterwave has consistently denied any wrongdoing. In early 2023, the CEO of the startup traveled to Kenya to seek the release of the funds. Following the withdrawal of the first case against Flutterwave, over $50 million was released. However, the ARA refused to release the remaining funds, prompting the judge’s criticism.
Flutterwave’s plans for a Kenyan license
With the funds now unfrozen, Flutterwave plans to apply for a Kenyan payments and remittance license.
Hot Take: Victory for Flutterwave and implications for the crypto industry in Africa
The ruling in favor of Flutterwave is a significant win for the fintech startup and sets an important precedent for the crypto industry in Africa. It highlights the need for regulatory clarity and fairness when dealing with crypto-related businesses. This ruling will likely boost investor confidence in the region and encourage further innovation and growth in the crypto sector. It also underscores the importance of startups like Flutterwave in driving financial inclusion and economic development in Africa.
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