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Kenya’s Assets Recovery Agency (ARA) has been denied permission by the High Court to withdraw its second case against Flutterwave, a leading African fintech company. The ARA had frozen $3 million belonging to Flutterwave, Hupesi Solutions, and Adguru Technology Limited on suspicion of money laundering and fraud.
The ARA had initially filed two cases against Flutterwave, but later sought to withdraw the second case. However, the High Court has rejected this request, stating that the ARA must provide sufficient reasons for the withdrawal.
Flutterwave is a Nigerian-based fintech company that provides payment solutions to businesses across Africa. It has gained significant popularity and has raised over $225 million in funding from investors.
The ARA froze the funds of Flutterwave and two other companies in August 2020, alleging that they were involved in money laundering and fraud. Flutterwave denied the allegations and filed a case challenging the freezing of its funds.
The ARA had previously withdrawn its first case against Flutterwave in December 2020, after the company provided evidence to prove that the frozen funds were legitimate. However, the ARA continued to pursue the second case, which has now been rejected by the High Court.
Flutterwave argued that the ARA’s actions were causing significant harm to its business and reputation. The company claimed that the freezing of its funds had disrupted its operations and affected its ability to serve its customers.
The High Court’s decision to reject the ARA’s request to withdraw the second case is seen as a victory for Flutterwave. The court’s ruling indicates that the ARA must provide valid reasons for its actions and cannot simply withdraw cases without proper justification.
Flutterwave has been expanding its operations across Africa and has partnerships with major companies such as PayPal and Visa. The company aims to provide seamless payment solutions to businesses and individuals across the continent.
The ARA’s actions against Flutterwave highlight the challenges faced by fintech companies in Africa. Despite the rapid growth of the fintech sector in the region, regulatory and legal uncertainties can pose significant risks to companies operating in this space.
Top things to Know
Here are the key points to know about the article:
– Kenya’s Assets Recovery Agency (ARA) has been denied permission by the High Court to withdraw its second case against Flutterwave.
– The ARA had frozen $3 million belonging to Flutterwave, Hupesi Solutions, and Adguru Technology Limited on suspicion of money laundering and fraud.
– Flutterwave is a leading African fintech company that provides payment solutions to businesses across the continent.
– The ARA had previously withdrawn its first case against Flutterwave in December 2020.
– The High Court’s decision is seen as a victory for Flutterwave and highlights the challenges faced by fintech companies in Africa.
Original article: https://techcrunch.com/2023/07/24/blow-for-flutterwave-as-kenyan-court-declines-request-to-withdraw-case/
