Patricia Technologies, a Nigerian crypto trading company, has assured its customers that it will proceed with its repayment plan despite the sudden withdrawal of its escrow partner, DLM Trust.
Patricia Technologies had earlier announced that it had partnered with DLM Trust, a SEC-licensed trust company, to oversee the management and disbursement of customer deposit repayments. The partnership aimed to ensure a seamless and secure process for returning deposits to Patricia Technologies’ valued customers.
However, DLM Trust issued a statement on Wednesday, saying that it had terminated the partnership due to multiple breaches of the agreement and trust by Patricia Technologies. DLM Trust also claimed that it had no knowledge of the announcement made by Patricia Technologies on Tuesday.
In a statement signed by its CEO, Hanu Fejiro, Patricia Technologies expressed shock and disappointment at DLM Trust’s decision. The company said it had conducted itself with utmost professionalism and transparency and had fulfilled its financial commitments to consummate the agreement. The company also said it had transferred substantial funds to DLM Trust as part of the planned payouts to its customers, scheduled to start on November 20, 2023.
The company denied the allegations of breaching the terms and conditions of the agreement and challenged DLM Trust to substantiate its claims. The company also hinted at taking legal action against DLM Trust for defamation.
The company assured its customers that the repayment plan would go as planned, starting November 20. The company, however, did not state how this would happen since it would need a third party to disburse the funds.
Earlier this year, Patricia Technologies converted its customers’ crypto and cash assets to Patricia Token without their consent. The company said it did this due to a cyberattack that led to the loss of assets. The company said the Patricia Token was an internal token that promised to pay holders 1 USDT for each Patricia Token in the future.
The company also offered its customers the option of converting the debt into equity shares. However, some customers rejected this option and insisted on returning their crypto assets.
Patricia Technologies is one of Nigeria’s many crypto trading companies that have faced regulatory challenges and customer complaints in recent times. The Nigerian government banned banks from servicing crypto exchanges in February 2023, citing security and money laundering risks. The ban has affected millions of Nigerians who use crypto for payment, investment, and remittance.
However, some experts and stakeholders have called for a review of the ban and a dialogue between the government and the crypto industry. They have argued that crypto can potentially boost Nigeria’s economy and create jobs for its young population.
Patricia Technologies said it remains committed to its customers and stakeholders and hopes to overcome the current challenges. The company said it is resilient and optimistic about the future of crypto in Nigeria.
Source: Nairametrics
