Risevest Assures Its Customers That Their Funds Are Secure
Risevest assures its customers that their funds are secure
Following a court order to freeze the accounts of investment platform Risevest, the digital investment company has taken steps to ensure that its customers' funds and investments are properly managed.
The Central Bank of Nigeria (CBN) recently obtained a court order freezing the accounts of four online investment platforms, Risevest, Chaka, Bamboo and Trove, for failing to obtain licenses and violating the country's trading regulations. For a period of 180 days, the accounts were frozen.
With more than 700,000 users between them, it is expected that billions of naira in customer funds will be locked up in those 15 accounts. Risevest also issued a statement to reassure its customers that their funds are secure and that there is no reason to be concerned.
The fintech company also stated that it will collaborate with regulators to ensure that all of the issues raised are adequately resolved. Investors should not be alarmed by the development, according to the company, because investments on its platform are managed by regulated third parties in all jurisdictions in which it operates.
Why did the Central Bank of Nigeria (CBN) freeze the accounts of Risevest and others?
The Central Bank of Nigeria's (CBN) request to freeze the accounts of four fintech companies, Risevest, Bamboo, and Trove, was granted by a federal high court in Abuja on Tuesday. According to Chief Michael Kaase Aondoakaa, counsel for the Central Bank of Nigeria, the investment companies was operating as asset management companies without the necessary licenses.
Besides that, the Central Bank of Nigeria (CBN) accused the companies of engaging in “illegal foreign exchange trading,” claiming that they were using foreign exchange sourced from the Nigerian market to purchase foreign bonds and shares, in violation of a directive issued by the CBN in July 2015.
The Central Bank of Nigeria (CBN) also informed the court that investment companies were a significant contributor to the weakening of the Naira against the United States dollar as a result of foreign exchange transactions conducted on their platforms. All of these, according to the country's central bank, are in violation of the country's trading laws.
However, even though the case has been postponed until February 20, any party who believes they have been wronged can still seek a reversal from the Federal High Court in Abuja before then. It is unclear whether Risevest intends to follow this course in its attempt to further reassure its customers.
