Dissatisfied Patricia Customers Continue to Demand Refunds

by MMC
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Weeks after converting customer assets to Patricia Token (PTK), Patricia hopes her fundraising will help her repayment plan, but frustrated customers aren’t convinced.

Nigeria-focused crypto platform Patricia is attempting to raise new funding weeks after admitting it lost $2 million in customer assets to a cyberattack last year. This is the latest measure taken by the Lithuanian company to reimburse its customers.

Last month, Patricia converted the rest of its clients’ assets into a debt management token: the Patricia token. This abrupt arrangement sparked an outcry from customers, forcing the company to provide a detailed explanation of the token. Despite the new token, Patricia admitted that her repayment plan is tied to its profitability as a platform, although she does not have a timeline for financial viability.

Through the company’s new fundraising efforts, Patricia hopes to raise enough money to reimburse frustrated customers.

During a virtual town hall meeting with users on Friday, Hanu Fejiro, the company’s CEO, confirmed that Patricia had secured funding, but he did not provide further details on the investment. “We raised money (and) we worked really hard to get the money back to you. And when we launch the app, the first customers will be able to get their money back immediately and in full.

Two months ago, Seun Dania, founder and CEO of crypto company TradeFada announced on LinkedIn that he invested in Patricia. The value of the investment was not disclosed.

Hanu added that the Patricia Plus app – scheduled to relaunch soon – is currently in beta testing. But for frustrated customers, these explanations are unsatisfactory. Patricia Plus was first launched in April and immediately sparked a bank run, as customers rushed to withdraw their funds after the company. admitted to losing funds because of the cyber attack. Patricia rushed to control the panic by freezing withdrawals, preventing clients from accessing their assets.

Patricia’s attempt to save the situation was to unilaterally convert her clients’ assets into tokens, an action she took without users’ consent and which raised legal issues. The company hopes to successfully use debt management tokens to repay its customers, taking inspiration from Bitfinex, a foreign cryptocurrency exchange that lost around $72 million to hackers in 2016. Bitfinex offered its customers a debt management token, an accountability obligation from Bitfinex. the company until it refunded them in full.

Although Patricia seeks to do something similar, a climate of distrust, due in part to her delay in disclosing the breach, remains a stumbling block in her efforts to gain full customer buy-in.

“Just let us know when we get our money,” one angry customer wrote in the comments section of the virtual town meeting. Another customer suggested in the comments section that affected customers protest to the authorities. Others are considering taking legal action against the company. “It’s simple, just give us a date when we can pull out,” another frustrated customer wrote.

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