Patricia Plans Repayment In Naira, Moving Away From Patricia Tokens
The latest update from Patricia reveals a significant shift: the funds, previously held in Patricia Tokens (PUTX), will now be reimbursed in Naira.
By Anna B Kiwanuka
Recently, DLM Trust, a Nigerian SEC-licensed trust company, announced a temporary pause in overseeing the repayment of $2 million in customer assets lost in a hack through their collaboration with Patricia. Kehinde Lawal from DLM Trust cited breaches in the terms of agreement between the parties for this decision.
However, Patricia contested these claims, affirming that scheduled repayments would proceed as planned on November 20, 2023. An internal communication from the platform affirmed their commitment to this date, addressing users’ inquiries and providing crucial information regarding the reopening and payment processes.
The latest update from Patricia reveals a significant shift: the funds, previously held in Patricia Tokens (PUTX), will now be reimbursed in Naira. The decision stemmed from difficulties faced with partners and financial institutions in comprehending and managing crypto-related transactions, necessitating a move towards Naira for transparency and ease of process.
Three months ago, Patricia replaced customers’ existing assets (held in Naira, Dollars, or Bitcoin) with their native token, Patricia Token (PUTX), without prior customer consent, sparking widespread criticism. The company clarified that the conversion of PUTX to Naira would be executed at the prevailing market rate during the operational suspension.
The selection of beneficiaries for the initial repayment batch was based on two criteria: the first-in-first-served principle and users with the lowest balances.
Patricia outlined the funding sources for repayments, including proceeds from fundraising, recoveries, and post-launch profitability, indicating the next payment batch hinges on these factors. Hanu Fejiro, Patricia’s CEO, disclosed the startup’s recent funding during a town hall meeting in September, coinciding with Seun Dania, CEO of TradeFada, announcing an investment in Patricia on LinkedIn.
Seun emphasized his investment as a vote of confidence in Patricia’s team during a challenging phase, recognizing the company’s resilience and character amid adversity.