Patricia App: What’s Going On? All you need to know, Patricia pleads with customers to turn its alleged ₦2bn debt to shares

Patricia is a software industry that allows you to securely buy or sell Giftcards and Bitcoin of any value, store them in a BTC or Local Currency Wallet and smoothly switch between the two for everyday transactions like airtime, data and cable subscriptions. With the all new Patricia App, Transacting with your Patricia account is a breeze.

Months after $2m hack became public, Patricia converts customers’ assets into “Patricia tokens Without Permission

The company announced in May 2023 of an alleged hack on their platform, and froze withdrawals for users of its platform same week. In an email to customers explaining the decision, the company said it suffered a breach, and part of the email read, “Not long ago, we were victims of a hack.

In August 18, 2023, it announced the launch of Patricia tokens (PTK), which all outstanding balances in naira and Bitcoin (BTC) will be converted to. It added that the newly launched token is a stablecoin equal to the US dollar in value — 1 PTK = $1.

However, customers who have not been able to access their funds for months were not too pleased with the announcements.

Questions such as how the token was backed and why Patricia converted the tokens without customer consent were raised.

Patricia CEO talking about being hacked.

Patricia pleads with customers to turn its alleged ₦2bn debt to shares

  • Patricia has given customers the option to convert their balance into Patricia shares.
  • Other customers reported the company discussing the possibility of a partnership with unclear terms.
  • Customers are agitated as they have not been able to withdraw their money from the crypto exchange in over six months.

“They said they are turning my money into shares, and I have no choice right now,” said *Abraham Nelson, recounting his conversation with a representative of the crypto exchange.

In the recording Nelson shared with Techpoint Africa, the Patricia representative said, “We have found investors but this is the only thing keeping us. This is the best we can do right now. It is most likely our last resort. We just need your cooperation.”

When Nelson asked if he’d still get access to his funds when they have been converted to Patricia shares, the representative responded affirmatively, saying, “You can be rest assured that you’ll get your money.”

Understanding that owning shares within the company was a form of investment, Nelson was confused. The company, however, told him he would get an email with more details, but he has yet to get the details.

The company revealed that it would be placing a call to customers in an email, but Techpoint Africa can only confirm that two customers have gotten the call.

Several updates, zero withdrawals

Patricia customers who spoke to Techpoint Africa said they’ve been unable to withdraw their funds for over six months. The agitated customers complained that the exchange keeps sending them updates without clearly telling them when they’ll be able to get their money.  

Nelson, who has about ₦4 million ($5,224) trapped in the company, said he’s been unable to withdraw the funds for almost seven months now.

Some customers said their funds have been trapped in the company for eight months.

Ifeanyi Lawrence said his troubles with Patricia started in February when he sent crypto from his Trust Wallet to the exchange to trade it for naira. The trade unusually took three days to be completed.

Lawrence was informed that the reason for the delayed transaction was due to a downtime in bank withdrawals.

He didn’t read much to it and decided to continue using the exchange to trade his crypto for fiat. However, his next transaction on the platform has been his last in the past six months.

The exchange communicated to customers that the delayed withdrawals were due to an unscheduled app maintenance and that customers would be allowed to withdraw in March.

As customers’ inability to withdraw funds lingered beyond March, Patricia said the problem was due to congestion on the blockchain.

It was after these series of updates that the company announced in May that it was a victim of a hack which reports say happened in 2022, and was over $2 million.

From Patricia tokens to Patricia shares

In August Patricia announced the launch of a native token called Patricia token (PTK), which it said would be used to pay back customer funds.

When the announcement of PTK was met with reactions that suggested the company might be planning an exit scam, it explained that the tokens were debt tokens that would work like an IOU (I owe you) document, a way for Patricia to acknowledge how much it owes customers.

Many of the almost 100 customers who spoke to Techpoint Africa said their PTK balances were still zero since the company made the announcement.

The customers were displeased by the exchange’s move to convert owed funds to shares, saying all they wanted was their money back.

How will the Patricia token (PTK) work?

The Patricia token will work like an IOU (I owe you) document, a way for Patricia to acknowledge how much it owes you. Per the whitepaper, “It symbolizes a promise by Patricia Technologies to pay holders 1 USDT for each Patricia Token in the future.”

It will serve as a “debt instrument” or debt token in exchange for the assets lost during the breach.

What will customers do with the token?

Customers whose BTC and naira balances have been converted to the PTK can redeem it for USDT, which can then be converted to other cryptocurrencies like BTC or fiat like naira. However, all conversion rates will be based on the US dollar value of the asset as of April 29, 2023.

When will customers get the PTK tokens?

The PTK tokens will be available to customers who lost BTC and naira to the breach when the new Patricia app — Patricia Plus App — launches.

How will Patricia release funds to customers?

Patricia will automate the release of funds with a smart contract. The contract will release funds based on the company’s profitability. According to the whitepaper, it “will automate Patricia Token release in line with exchange profitability.” This means the company has to consistently make money to release funds to customers. Interestingly, a source close to the company shared that other parts of the company, such as its over-the-counter (OTC) business, have remained profitable during the withdrawal freeze on its retail business. 

While Patricia might have clarified the reasons why it launched PTK, it still has a lot of work to do to earn the trust of retail customers.

Customers have been seen online complaining bitterly about Patricia staffs not opening their offices.

Culled from