Nigerian fintech Risevest, Bamboo, others ease fears amid CBN freezing accounts

Nigerian fintech firms Risevest, Bamboo, Chaka, and Trove have assured users of the safety of their funds amid the Central Bank of Nigeria freezing their accounts on Tuesday.

So, CBN secured an injunction at Federal High Court in Abuja to freeze the bank accounts of four financial

technology firms for operating as asset management companies without a license.

However, Michael Aondoakaa (SAN), a lawyer to the CBN, alleged that the companies were operating without licenses

as asset management companies “and utilising foreign exchange 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 1, 2015.”

However, the fintech firms said they are negotiating with government authorities and urged users not to panic

about the safety of their funds.

From the Fintech Firms

Bamboo said it is aware of the recent reports and their “legal and government relations teams are looking into it,

but we thought it was important to let you know that your money remains safe with Bamboo and will always

be readily accessible.”

Chaka, however, argued that it “is duly licensed by the Security Exchange Commission (SEC), which means that

all of our operations are within the purview of Nigerian regulators.”

Furthermore, The firm said it has started engaging with appropriate authorities to gain clarity and clear any misunderstandings.

Insurance by the SIPC is on Chaka’s Fund, also registration and regulation of all investments is by

the Security Exchange Commission (SEC) and Nigerian Exchange Group (NGX),” Chaka said in an email to its users.

Rise Vest CEO Eke Urum also said trading activities would continue as usual on the platform as his team

had sought resolution with the regulator.

“You can be sure that your investments and funds are safely managed,” also that processes of funding and withdrawals

will continue normally, and that all our US operations remain intact,” Rise Vest told users in an email.

Finally, Rise Vest said it will work with regulators, that will ensure the address of all issues that arise properly

By Taiyelolu A

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