Nigeria freezes bank accounts of fintech platforms Risevest, Bamboo, Trove and Chaka

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The Central Bank of Nigeria has reportedly frozen the bank accounts of fintech platforms Risevest, Bamboo, Trove and Chaka for the next six months.

On Tuesday, Nigerian blog, The Whistler reported that the Federal High Court sitting in Abuja granted an ex parte motion that sought temporary freezing of bank accounts belonging to certain online investment and trading platforms.

The affected firms being Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Tech. Ltd OPNS, Chaka Technologies Limited, CTL/Business Expenses and Trove Technologies Limited.

The apex bank alleged that the six fintech firms were complicit in operating without a license as asset management companies “and utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.”

The bank added that the illicit foreign exchange trade has contributed to the devaluation of the naira.

Hence it was granted an interim order to freeze forthwith all the bank accounts of the Defendants/ Respondents for a period of 180 days pending the outcome of investigation and inquiry conducted by the regulator.

Rise Vest and Bamboo have since come out on Twitter to assure their users of the safety of their funds pending when the issue will be settled.

Additionally, financial experts like Kalu Aja, Ayo Sogunro and Wale Adetona decried the impact of the apex bank decision on Nigeria’s fintech space.

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