BD Insider 213: Saviu Ventures plans to back startups in Francophone Africa

In today's BD Insider Perspective, Efayomi Carr, principal at Flourish Ventures, offers insights into overcoming financial challenges for startups, drawing from his experience as the former chief financial officer at Lori.

In this letter, we covered:

• the latest about Patricia's $2 million cyber hack
• Saviu Ventures’ plan to back startups in Francophone Africa
• why Social media handles can't be sued in Kenya

We also curated other noteworthy information, including job opportunities.

The big three

#1. Nigerian politician linked to $2 million cyber hack at Patricia

The news: The Nigerian Police Force (NPF) has detained Wilfred Bonse, a Nigerian politician, on charges related to his suspected involvement in a cyber hack that resulted in a $2 million loss at Patricia, a Nigerian-focused crypto exchange.

Know more: According to Olumuyiwa Adejobi, the police spokesperson, Bonse, a contestant in the recent gubernatorial election in Cross River state, is alleged to have collaborated in the laundering of ₦50 million. The funds purportedly stem from the fraudulent diversion of ₦607 million from Patricia's Flutterwave account to his bank account, facilitated through a cryptocurrency wallet.

“The case involves criminal conspiracy, unauthorised modification of computer systems, network data, and the unlawful diversion of funds,” Adejobi added.

Why it matters: This arrest comes six months after Patricia reported a cyber hack where $2 million was compromised. Since the security breach, the crypto exchange has faced backlash from users eager to recover their funds.

In an effort to facilitate repayments, Patricia has made several decisions, including the conversion of users' assets into its native token, Patricia Token. However, this move has been met with resistance from most users and social commentators.

Last week, Patricia relaunched its app and started repayment using funds that it recently raised.

“This is not all the money lost, but recovery from this would go a long way to soothe Patricia's users,” according to Hanu Fejiro, the startup's founder and CEO. “My commitment remains to Patricia users, Repayment started on the 20th of November, and it will continue. Until every user is reached.”

Zoom out: Adejobi assured that the National Cybercrime Center of the Nigeria Police will continue investigations in order to arrest other culprits that are at large.