Exclusive: Crypto exchange, Patricia to repay users in Naira

In October, Nigerian SEC-licensed trust company, DLM Trust announced that it temporarily paused its appointment as an escrow trustee with Patricia to oversee the repayment of $2 million in customers’ assets lost in a hack last year.

"This is because of multiple breaches in the terms and conditions of agreement and trust between Patricia Technologies and DLM Trust Company," Kehinde Lawal, senior associate at DLM Trust, told Bendada.com.

Patricia refuted the claim and stated that all scheduled payments would proceed on November 20, 2023. A recent internal communication from the Nigeria-focused cryptocurrency platform shows that it intends to stick with the date.

"With the reopening date of our app drawing near, I know you have a lot of questions you would love to ask," the company [with the pseudonym Sunny from Patricia] shared in an email to users. "I will be sharing with you some pertinent information concerning the reopening, payment and all you need to know."

In the email, Patricia disclosed that the funds which are currently held in Patricia Tokens (PUTX) will be paid in Naira. "Naira because we have had issues with partners in the past, financial partners and institutions who have difficulty in understanding Crypto and are not able to audit or manage the repayment process. To ensure full transparency in this process, we have to adopt naira payments," the statement read.

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Recall that three months ago, Patricia replaced customers’ assets—which were previously held in Naira, Dollars or Bitcoin—with a newly launched native token, Patricia Token. This assets swap was done without the consent of the customers and was received with widespread criticism.

The company stated that the conversion of PUTX to Naira would be done at the market rate at the time of its operational suspension.

The beneficiaries of the first batch of repayment have been selected based on two criteria; a first-in-first-serve method of users who filled the asset and users who have the lowest balances.

According to Patricia, the funds for the repayment are from proceeds from fundraising efforts. "The next batch of payment would be hinged upon one of these three things: fundraising efforts, proceeds from recoveries, and profitability post-launch," the company said.

During a town hall meeting in September, Hanu Fejiro, the startup's founder and CEO told customers that Patricia had raised some funding. Before his announcement. Seun Dania, founder and CEO of TradeFada announced on LinkedIn that he invested in the company.

According to Seun, "Every great company faces its share of challenges, and Patricia Technologies is currently navigating through a demanding phase. Yet, adversity often uncovers strength, resilience, and true character. My investment is not merely a financial move; it's a resounding vote of confidence in the team."

This is a developing story