CBN freezes RiseVest, Bamboo, Trove, and three other fintech accounts over alleged illegal trading

The Central Bank of Nigeria (CBN) on Tuesday, August 17, 2021 secured a court order to freeze the accounts of some fintech platforms for alleged illegal trading practices.

The CBN approached the Federal High Court in Abuja to freeze the accounts of RiseVest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Tech. Ltd OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.

The companies were accused of operating without a license as asset management companies and utilizing foreign exchange sourced from the Nigerian market to purchase foreign bonds/shares in contravention of CBN's directives.

RiseVest was also accused of trading cryptocurrencies after the CBN banned financial institutions in Nigeria from doing so earlier this year.

The court ordered a 180-day freeze on the bank accounts of the affected companies, pending the outcome of CBN's investigation.

Reacting to the move by the apex bank, Chaka in a message to investors said it is aware of the situation and reassured investors that their investments remain safe and accessible as a platform duly licensed by the Security Exchange Commission (SEC).

Bamboo in a push notification to its clients also assuring investors that funds are safe. “We are aware of the recent reports about us. Our legal and government relations teams are looking into it but we thought it was important to let you know that your money remains safe and will always be accessible,” Bamboo said.

RiseVest, in the same vein, said investors' funds will also not be affected. “With regard to the latest news about us and our FX dealings, you can be sure that your investments and funds are safely managed, that funding and withdrawals will continue to be processed as normal, and that all our US operations remain intact,” Risevest wrote in a mail to investors.