Written by 10:48 pm Fintech/Cryptocurrency, Startups, Tech Views: 12

Patricia Tech Faces Backlash Over Asset-to-Equity Proposal

Patricia team members who are working diligently to address the challenges following the security breach.
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Nigeria-based digital currency firm, Patricia Tech, recently proposed a plan to transform client assets into company equity. This move, however, has been met with significant resistance from its clientele.

Several clients reported receiving official communication from Hanu Fejiro, the company’s founder, detailing the proposal. The primary concern among these clients is that accepting the offer might equate to relinquishing their financial investments.

Earlier in the year, Patricia reported a security breach, resulting in a loss approximated at N2 billion of client assets. To address this, the company introduced a new digital token, Patricia Coin, and converted client assets into this new format. This decision, however, has been met with skepticism, with many clients alleging potential malfeasance and demanding the restoration of their initial investments.

In light of these events, a group of clients is organizing a demonstration in Lagos to voice their concerns and demand the return of their digital assets. The company, aware of the impending protest, has been urging these clients to reconsider, suggesting that such actions might deter potential investors.

Fejiro, in a recent virtual meeting, hinted at potential investors expressing interest in the company. However, some clients remain skeptical, questioning the timing of these purported investments.

In an official statement, Patricia Tech addressed rumors about vacating their Nigerian office due to the ongoing financial issues. The company clarified that they operate on a remote basis and have shifted their headquarters to Vilnius, Lithuania, following certain regulatory changes by the Central Bank of Nigeria in 2021.

Earlier incidents saw the company converting client assets into an internal token, Patricia Token, following a cyberattack. The company assured clients that this token represents a commitment to repay the equivalent of 1 USDT for each Patricia Token in the future.

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