What does Flutterwave do? Flutterwave is a Nigerian company that provides a payment framework for merchants worldwide and payment service providers across the continent. The company was founded in 2016, and its headquarter is in San Francisco, California, with operations in Nigeria, Kenya, Ghana, South Africa, and seven other African countries.
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Why Does Flutterwave Scandal Hype Up?
The Flutterwave Scandal occurred in July 2022; Flutterwave was accused of money laundering and fraud claims, which are still frozen in two banks and 19 mobile money accounts. About $3 million of its money was seized in the second government seizure; the matter is before Kenya’s high court. The initial case was closed in March 2023, from which $52.5 million were released after the ARA family withdrew the case.
In an interview, Flutterwave said, “We’re confident the outstanding suit is simply open due to usual court processes and will also go the way of the previous one as we’ve been cleared of all wrongdoings. We’re happy to put this behind us and work to simplify payments for endless possibilities in one of Africa’s most dynamic markets”.
Is The Flutterwave Scandal Still In The Court?
The court released the funds belonging to Flutterwave and its correspondent after the ARA formally withdrew the confiscation application against them on 27th February 2023; the first case ended. The Flutterwave had yet to access the funds – yet some parties in the case had accessed their funds.
Flutterwave said it’s “working through the process to access all funds.” It still needs to be clarified why fintech can not access its funds. A Kenyan court has ordered the release of funds earlier in February 2023. The application by the court was sent to 2.468 Nigerians who sought to have part of the frozen funds separated if the money was surrendered to the government.
The Flutterwave Scandal arose because the individuals had ‘invested’ and lost through a sports betting platform, which they claim was a false investment and trading scheme that used Flutterwave to process its payments.
What Are The Officials Saying After The Flutterwave Scandal?
The reports said that hackers made away with $2.9 billion from the fintech’s accounts and that the funds were illegally transferred into several accounts in different banks in Nigeria. The report breaking made the fintech company take an order to free the accounts of several customers in many banks.
However, Flutterwave, in its statement, said its payment system wasn’t hacked and that none of its customers lost any funds. “We want to confirm that no customer lost any funds, and we’re proud that our security measures were able to address the issue before any harm could be done to the customers.”
The fintech company claimed that during a routine check of its transaction monitoring system, it identified an unusual trend of transactions on some users’ profiles and that its team acted accordingly.
“Our team immediately launched a review (in line with our standard operating procedure), which revealed that some customers who had not activated some of our recommended security settings might have been susceptible.”
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Fintech’s Assurance Of Security After The Flutterwave Scandal
How secure is Flutterwave? The officials of Flutterwave said, “Our commitment to keeping our users’ financial information safe and secure is why we invest heavily in security initiatives such as regular audits, certification, and licenses such as the PCI-DSS and ISO 27001. These are in line with global best practices in information security management.”
The tech company urged its customers to continue trusting its operations and feel secure using Flutterwave for their business needs.
“Our commitment is to enable your business growth while keeping your business growth while keeping your financial information safe and secure,” Flutterwave said.
Overall, fintech, which raised $350 million last year at a $3 billion valuation, making it one of the most valuable startups in Africa, has faced a string of controversies over the last year, including claims of harassment, funds misappropriation, and mismanagement. All the allegations that occurred by the Flutterwave Scandal are now cleared off the fintech, Flutterwave investigation is done, case in the court is closed. Now the company is trying to regain its customer’s trust and position in the market.