Risevest assures customers of funds safety despite court order freezing its account

Following a court order freezing the accounts of investment platform, Risevest, the digital investment company has moved to assure its customers of the safe management of their funds and investments.

Recall that the Central Bank of Nigeria (CBN) obtained a court order freezing the accounts of 4 online investment platforms, Risevest, Chaka, Bamboo and Trove for operating without licenses and violating the country’s trading laws. The accounts were frozen for 180 days.

With more than 700,000 users between them, billions of naira belonging to customers are expected to be locked in in those 15 accounts. And Risevest has released a statement to assuage its customers that their funds are safe and there’s no cause for alarm.

“With regard to the latest news about us and the 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 assures customers of funds safety despite CBN account freeze
Risevest Technology

The fintech also said it will work with regulators to ensure that all issues raised are properly addressed. It noted that investments on its platform are managed by regulated third parties in all jurisdictions in which it operates and users should not be alarmed by the development.

Why CBN froze accounts of Risevest, others

A federal high court in Abuja granted a request by the CBN to freeze the accounts of the fintech companies namely; Risevest, Bamboo, Trove and Chaka. According to CBN counsel, Chief Michael Kaase Aondoakaa, the investment companies were operating as assets management companies without licences.

Furthermore, the CBN accused the companies of “illegal foreign exchange trading” as they were allegedly using the foreign exchange sourced from the Nigerian market for purchasing foreign bonds/shares in contravention of its directive issued in July 2015.

The CBN also told the court that due to the foreign exchange deals conduct on their platforms, the investment companies were a major factor contributing to Naira’s weakening against the U.S dollars. All these, the apex bank says, are in violation of the country’s trading laws.

while the Federal High Court in Abuja adjourned the case to February 20, any party who still feel aggrieved can approach the court for a reversal before then. It remains to be seen if Risevest intends to tow this line in its bid to further assuage its customers.

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