Africa-Press – Angola. 2025 wasn’t just the year funding stayed tight. It was the year African startups got exposed.
While founders were pitching growth stories, behind closed doors companies were collapsing under governance failures, fraud allegations, and co-founder breakups that went viral. Some lost millions. Others lost reputations. A few faced criminal penalties.
This isn’t about companies that failed because of market conditions. This is about companies that failed because of what happened inside the boardroom.
Here are the seven controversies that shook the ecosystem—and what they mean for every founder building today.
1. Thepeer: The $1.2M That Disappeared
What happened: Nigerian fintech Thepeer quietly shut down in 2024. A year later, co-founder Sultan Akintunde went public with allegations of fraud and missing funds.
The details:
Company raised VC backing to build wallet-to-wallet payment infrastructure
Akintunde claims $1.2 million went unaccounted for
Alleged misuse included $50K spent on car purchases for a company generating less than $1K in annual revenue
As third-largest shareholder, Akintunde requested an audit in March 2024
He alleges co-founders “rushed to shut down the company” to avoid investigation
Approximately $500K was explained; $700K remains missing
Investors demanding formal audit despite partial fund returns
The lesson: If a company generating
2. Paystack: A Co-Founder Gets Fired Mid-Investigation
What happened: Ezra Olubi, co-founder and CTO of Paystack (Africa’s most credible fintech exit to Stripe), was fired in November 2025 over misconduct allegations.
The details:
Allegations of inappropriate conduct with a subordinate surfaced online
Decade-old sexually explicit tweets from Olubi’s X account resurfaced
Paystack suspended Olubi and launched internal investigation
Before investigation concluded, Paystack terminated him citing “significant negative reputational damage”
Olubi disputes the termination, claiming breach of suspension terms
Legal experts question whether decade-old public behavior (discoverable during 2020 Stripe acquisition) justifies termination under “reputational risk” clause
The controversy: Can a company fire someone for behavior that was public knowledge when they acquired the company? Paystack prioritized PR over process.
The lesson: Your past is永remote searchable. And when scandal hits, even billion-dollar acquisitions won’t protect you.3. M-KOPA: When Co-Founders Turn on the Board
What happened: M-KOPA, Kenya’s $50M+ solar fintech darling, had an internal power struggle go very public.
The details:
Co-founder and former CFO Chad Larson filed complaint with Capital Markets Authority (CMA) on November 6, 2025
Accused board and investors of orchestrating share buyback that “unfairly exploits Kenyan employees”
Claims valuation was “artificially suppressed” by nearly 95% vs actual market value
M-KOPA fired back, calling it a “campaign of misinformation” from ex-employee working for competitor
The stakes: This wasn’t just about one person—it was about whether local employees get fair equity treatment when foreign investors control the cap table.
The lesson: Employee share schemes sound good until valuations become weapons. Transparency matters.4. CBEX: AI-Powered Ponzi Fraud
What happened: CBEX, an “AI-powered crypto trading platform,” froze withdrawals in April 2025 and revealed itself as a Ponzi scheme.
The scale:
$16.5M in reported losses from 380 victims (crowd-sourced)
Experts estimate total exposure could exceed $100M
Used deepfake videos of Elon Musk and Johann Rupert to promote “automated trading systems”
Promised 100%+ monthly returns
The scam evolution: After the collapse, CBEX claimed “rogue marketers” and “hacked systems.” Then they tried the classic re-scam: told victims they’d been “compensated” but needed to pay a “verification fee” to unlock funds.
The lesson: AI didn’t just lower the barrier to entry for startups. It lowered the barrier for fraud. Deepfakes + desperation = the perfect financial crime.
5. Union54/ChitChat: Co-Founder War Goes Viral
What happened: Zambian fintech Union54 (which pivoted to social commerce app ChitChat) had a co-founder lawsuit turn into a social media spectacle.
The details:
Patrick Sikalinda filed lawsuit September 9, 2025, claiming illegal removal and denied 33% equity stake
Seeking $29.1M in compensation based on $20M company valuation
Company claims Sikalinda was “short-term subcontractor” removed for non-performance
Both sides released statements online, leaked internal conversations, legal threats
Dispute went viral on X
The lesson: Early-stage excitement kills paperwork. Then paperwork kills companies. Get founder agreements in writing before you raise money.
6. 54 Collective: The $689K Rebrand That Killed a Fund
What happened: 54 Collective (formerly Founders Factory Africa) lost its Mastercard Foundation grant over a corporate rebrand funded with restricted charitable money.
The details:
Non-profit Africa Founders Ventures (AFV) allegedly used grant money for $689K rebrand without consent
Forensic review uncovered 2,000+ backdated journal entries
$4.59M transfer from non-profit AFV to for-profit Founders Factory Africa
Mastercard Foundation terminated grant in January 2025
Court-ordered liquidation in July 2025
The lesson: You can’t rebrand your way out of governance failures. Especially not with donor money.
7. Banxso: $118M Fine for Deepfake Trading Fraud
What happened: South African trading platform Banxso collapsed in the biggest fintech fraud of 2025.
The scale:
South Africa’s FSCA issued $118M penalty (ZAR 2B)
30-year industry bans for executives
Used deepfake videos of Elon Musk, Johann Rupert, and UFC fighter Dricus du Plessis to promote fake trading systems
Sponsored Bafana Bafana (national football team) to build legitimacy
Victims lost life savings; some filed liquidation applications
Western Cape High Court placed Banxso under provisional liquidation in August
FSCA delivered final penalty in December
The lesson: Celebrity deepfakes + legitimate brand partnerships = the fraud playbook of 2025. Regulators are finally catching up.
What This Means for Every Founder
These aren’t isolated incidents. They’re symptoms of an ecosystem that moved too fast without building the right foundations.
The patterns:
Governance is Optional (Until It’s Not) – No one cares about board structure or audit trails when you’re growing. Then the forensic accountants arrive.
Co-Founder Agreements Get Signed After Trouble Starts – “We’ll figure it out later” becomes “see you in court.”
Fraud Is Getting More Sophisticated – AI tools democratized deception. Deepfakes aren’t science fiction anymore.
Public Meltdowns Are the New Normal – Private disputes become social media wars. Reputation damage is instant and permanent.
Capital Without Controls = Disaster – VCs funded companies without operational discipline, then acted shocked when money went missing.
For founders:
Get founder agreements signed BEFORE you incorporate
Set up proper financial controls from Day 1 (not after you raise Series A)
Separate personal and company expenses (no cars, no vacations on company cards)
Document everything (board meetings, equity allocations, financial decisions)
Don’t let disputes go public (lawyers first, Twitter never)
For investors:
Due diligence on founders, not just markets
Operational support isn’t optional (portfolio companies need CFO/governance help)
Check the basics (bank reconciliations, expense approvals, equity cap tables)
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