Nigerian cryptocurrency exchange, Patricia, is once again in the news, weeks after it raised concerns by deciding to convert customer crypto assets into a new native token.
According to a local report, the company is attempting to raise new funding despite the earlier conversion, with this move seen as an attempt to get funds to repay customers. The company allegedly lost $2 million worth of customer funds to a cyber – attack back in May 2023.
In August 2023, Patricia converted its customers’ assets into a debt management token – the Patricia token ($PTK). The abrupt arrangement triggered an outcry from customers, forcing the company to issue a detailed explanation of the token. Despite the new token, however, Patricia acknowledged that its repayment strategy is linked to the profitability of its platform. However, there is no specific timeline in place for achieving financial sustainability.
During a virtual town hall meeting with users, Hanu Fejiro, the CEO of Patricia, reportedly indicated the exchange had successfully secured funding. However, he did not disclose any additional information or specifics about the investment.
Patricians! It’s time to have your say!
Join us this Friday, September 29, 2023, from 1-2 p.m. for an exclusive town hall session where we spill the tea on our Patricia Relaunch, the Patricia Token, and why we need YOU on board! pic.twitter.com/WXv0SYK4fg
— Patricia (@PatriciaSwitch) September 26, 2023
“We have raised money [and] we have been working very hard to get the money back to you. And when we launch the application, the first set of customers will be able to get their money back immediately and in full.”
Hanu also mentioned that the Patricia Plus app, scheduled for a forthcoming relaunch, is presently in the beta testing phase. Nevertheless, these explanations have not proven satisfactory for the disgruntled customers.
When Patricia Plus was initially launched in April 2023, it sparked a bank run scenario as customers hurried to withdraw their funds. This reaction came shortly after the company acknowledged losses resulting from the cyberattack.
“Just let us know when we are getting our money,” one angry customer reportedly wrote in the comment section of the virtual town meeting.
One customer, in the comments section, proposed that the impacted customers should organize a protest to bring their concerns to the attention of the authorities. Some are also contemplating the possibility of pursuing legal action against the company.
“It’s straightforward; just provide us with a withdrawal date,” expressed another frustrated customer.
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