Kuwait's Boutiqaat being investigated for money laundering
Boutiqaat, the leading Kuwaiti beauty ecommerce platform has
found itself in the middle of a money-laundering scandal involving social media
influencers that has sent shockwaves across the country, according to
MENAbytes.
The Kuwaiti ecommerce platform is built around social media
influencers. It enables them to set up their virtual boutiques (stores) on
Boutiqaat where they can add their favorite products allowing, their fans and
other customers to buy these products with Boutiqaat taking care of the entire
transaction.
The local media has reported that social media influencers
in question are suspected of using Boutiqaat’s platform to launder the money.
The public prosecutor of Kuwait has ordered the central bank of the country to
freeze bank accounts of all the social media influencers suspected of money
laundering and Boutiqaat. He has also placed travel bans on all of them
including Abdulwahab Al Essa, the founder, and CEO of Boutiqaat.
All the bank accounts of Boutiqaat and its founder in Kuwait
have been frozen, we’ve learned.
Boutiqaat’s investor Boubyan which had invested $45 million
in the ecommerce startup in January 2018, in a disclosure document confirmed
that the public prosecutor has ordered the bank accounts of Boutiqaat to be
frozen. The document also explained that the effect of the development on
Boubyan’s financial position cannot be determined at this point.
The Kuwaiti startup itself hasn’t issued any statement but
the platform is up and running. A source with the knowledge of the matter has
told MENAbytes that the sales of Boutiqaat have dropped by over 90 percent
since the news surfaced on social media.
The startup had recently hired Citigroup to raise fresh
funds at a valuation of up to $1 billion.
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