DLM Trust, a Nigerian SEC-licensed trust company, temporarily halted its role as an escrow trustee for Patricia Technologies. The pause was attributed to alleged breaches in the terms and conditions of the agreement between the two entities, as revealed by Kehinde Lawal, a senior associate at DLM Trust.
The dispute arose in the context of overseeing the repayment of $2 million in customers’ assets lost in a hack the previous year. Patricia Technologies, however, refuted these claims and assured users that all scheduled payments would proceed as planned on November 20, 2023.
In an internal communication, Patricia, under the pseudonym Sunny, addressed its users, stating, “With the reopening date of our app drawing near, I know you have a lot of questions you would love to ask.” The company disclosed its intention to stick to the scheduled repayment date and shed light on the process.
One significant announcement revealed that the funds, currently held in Patricia Tokens (PUTX), would be paid in Naira. Patricia explained this decision by citing past challenges with financial partners and institutions unfamiliar with crypto, emphasizing the need for transparency in the repayment process. The conversion of PUTX to Naira would be conducted at the market rate at the time of the operational suspension.
The beneficiaries of the initial repayment batch were selected based on two criteria: a first-in-first-serve method for users who filled the asset and users with the lowest balances. Patricia clarified that the funds for repayment are sourced from proceeds from fundraising efforts. The next batch of payments is contingent on fundraising efforts, proceeds from recoveries, and post-launch profitability.
During a town hall meeting in September, Hanu Fejiro, Patricia’s founder and CEO, informed customers about the startup’s successful fundraising efforts. Additionally, Seun Dania, founder and CEO of TradeFada, publicly announced his investment in Patricia Technologies on LinkedIn. Dania expressed confidence in the company, stating, “My investment is not merely a financial move; it’s a resounding vote of confidence in the team.”
