Flutterwave, the dominant force in Africa’s online payment landscape, finds itself entangled in accusations of questionable practices. Allegations have surfaced, implicating the co-founder and CEO, Olugbenga Agboola, in the creation of a fictitious co-founder persona to secure a larger share of the company. Additionally, it is alleged that he has extended share offers to employees at prices significantly below the actual valuation of the company.
While a newsletter penned by the well-known Nigerian journalist, David Hundeyin, initially laid out these allegations, it is Hundeyin’s tweet that has catapulted the Flutterwave scandal into a new, more intense realm. His assertion of possessing pivotal documents and recordings adds a layer of intrigue to the situation, hinting at the possibility of further dramatic developments for Nigeria’s esteemed entrepreneur, Agboola.
In an official statement released on Sunday, Flutterwave emphatically asserted that none of its patrons incurred any financial losses, and categorically denied any intrusion into its system.
The company disclosed that it detected an “unusual pattern of transactions” while conducting a routine examination of its transaction monitoring system on select user profiles. Upon thorough scrutiny of these transactions, it was determined that users who had not activated recommended security measures might have been vulnerable to this pattern.
Flutterwave promptly took decisive measures to rectify this situation, thereby safeguarding its user community from any potential harm.
Background Information:
Initial reports of a security breach within Flutterwave’s system surfaced courtesy of Techpoint. According to the report, hackers allegedly initiated transfers exceeding N2.9 billion from Flutterwave accounts in early February.
Albert Onimole, legal counsel representing Flutterwave, reportedly lodged a formal complaint with the Deputy Commissioner of Police at the State Criminal Intelligence Department, Panti, Yaba, Lagos. According to the attorney’s correspondence, the breach of Flutterwave’s accounts transpired approximately two weeks prior, starting on February 13.
The report indicated that the funds were initially funneled into 28 distinct accounts through a total of 63 transactions. Despite the incident being reported to the police on February 13, 2023, complete with a list of the beneficiary accounts, law enforcement was unable to freeze the funds.
In its official press release, Flutterwave refrained from furnishing specific particulars regarding the alleged breach. While the press release unequivocally denies any monetary losses, it does not refute the occurrence of a hacking attempt, albeit one that ultimately proved unsuccessful.
