Moves by Nigeria’s crypto trading company, Patricia Technologies, to convert its customers’ assets into equity shares in the company have been rebuffed.
Some of the customers who spoke to Nairametrics said they had received the offer letter signed by Patricia’s founder, Hanu Fejiro, but they refused to sign it because it would mean signing their money away.
They insisted on returning their crypto assets converted to Patricia Coin without their consent.
Although the company claimed its system was hacked earlier this year which led to the loss of about N2 billion in customer assets, hence the conversion of the customers’ assets value to its own created token, the customers are alleging fraud and insisting on the return of their original assets.
Customers set to protest
Already, some of the customers have concluded plans to hold a peaceful protest in Lagos to demand their crypto assets.
According to one of the customers, the company, on getting to know about the planned protest has been appealing to them to shelve it, adding that such a protest could stop potential investors from coming to the company.
They are, however, insisting on holding the protest on Tuesday, October 24, 2023.
- “The last Zoom meeting we had with the company was more than 4 weeks ago. Hanu Fejiro made mention of investors bringing money. The investors that had not come over the last six months that we have been on this issue, is it now that they will come? If truly the protest is going to stop the investors from bringing money, then it’s worth it. We can’t wait anymore,” one of the customers told Nairametric.
The offer letter
In the offer letter titled ‘Offer to Convert Debt to Equity in Patricia Technologies Limited, the company’s founder wrote:
- “We write in respect of the above. Further to various discussions held between our duly authorized representatives and your good self on the above offer, we now offer to you, the option of converting your debt in our Company to equity thereby making you a shareholder in our Company.
- “In the event that you are favourably disposed to accepting this offer, kindly sign (electronically or manually) in the space provided below for that purpose and return it by electronic mail). Upon receipt of your acceptance, we shall promptly ensure that all necessary documentation to perfect the conversion shall be made available to you for your review and execution.
- “We look forward to receipt of your acceptance not later than 7 days following receipt of this letter and welcoming you on board our ship.”
No physical presence in Nigeria
Meanwhile, Patricia in a statement released over the weekend debunked a viral video showing an empty office space that was purportedly vacated by the company because of the debt issue. The company said it runs a fully remote operational structure, and it has no physical office in Nigeria.
- “In light of the Central Bank of Nigeria (CBN) regulations initiated in 2021, we transitioned our headquarters to Vilnius, Lithuania. Our business model is designed for remote operations, and we have invested significantly in infrastructure to facilitate this. Our team members are spread across different continents, and as of now, we do not have an operating office in Nigeria,” Patricia stated.
While stating that it “deeply regrets the discomfort you have experienced due to your inability to access your funds,” the company appealed to its customers as it was working to resolve the issue.
Backstory
The crypto trading company earlier this year converted its customers’ crypto and cash assets to Patricia Token without their consent.
Patricia in a White Paper released to explain its actions said it experienced a cyberattack, which led to the loss of assets. It added that its commitment to integrity and customer trust spurred the creation of the Patricia Token as an internal token for the customers to hold on to.
According to the company, the Token symbolizes a promise to pay holders 1 USDT for each Patricia Token in the future, thereby ensuring asset recovery and addressing the impact of the security breach. It said the Patricia Token is not on-chain, but an internal token used to represent debt and it would be managed by the company.
So they want to offer customers “shares” in a company that is practically worth nothing? Reputation is everything, at this point I don’t know if these guys can ever convince anyone to do business with them again.
From these happenings, it’s very likely that most customers’ funds were wiped out during the cyber attack or whatever happened back then. I feel sorry for the customers but it seems obvious that the company is broke at the moment, hence can’t pay them. Perhaps the company is making the latest offer in the hope that whatever few coins they may still have, could grow reasonably in the future if the crypto revolution continues. However, even if this is the case, it may take several years or even a decade before it comes to fruition.