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CBN freezes bank accounts of Rise Vest, Bamboo, Trove, Chaka over alleged illegal trading

The accounts will be frozen for 180 days pending the outcome of CBN's investigation.

CBN Governor, Godwin Emefiele

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

The apex bank approached the Federal High Court in Abuja to freeze the accounts of Rise Vest 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 license as asset management companies, and utilising foreign exchange sourced from the Nigerian market to purchase foreign bonds/shares in contravention of CBN's directives.

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

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

In a swift reaction to the court order, Rise Vest assured its customers that funding and withdrawals will continue to be processed as normal.

"We will work with regulators, as we always have to ensure that all issues raised are properly addressed.

"However, this does not affect our users or their investments, which are managed by regulated third parties in all jurisdictions in which we operate," the company said in an email to customers on Tuesday night.

Bamboo also said its legal and government relations team are already working to resolve the dispute.

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"Your money remains safe with Bamboo and will always be readily accessible," the company assured customers.

Justice Ahmed Mohammed, who delivered Tuesday's ruling, asked aggrieved parties to approach the court to seek redress.

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