Fejiro Hanu, CEO of Patricia, a pioneering crypto exchange in Nigeria, has publicly refuted claims about the closure of the exchange. Addressing the media, Hanu clarified that the exchange is operational and such rumors were largely amplified by the media for sensationalism. He criticized the tendency of news outlets to prefer alarming narratives over positive updates, which results in misinformation spreading among the public and stakeholders.
Challenges Faced by Patricia Post-Hack
Patricia Technologies faced a significant setback in May 2023 when it suffered a hacking incident leading to a substantial financial review. Although Patricia assured its customers that their funds were safe, several users reported issues accessing their assets from April 2023 onwards. This led to rampant speculation about the security of their funds and concerns over a possible fraudulent exit.
Company’s Measures for Damage Control
As part of its damage control strategy, Patricia converted the affected customer assets into its native Patricia Token (PTK). This move was to ensure that the customers retained some form of value and to reinforce trust. The company also promised to repay each token holder with an equivalent value of 1 USDT token as compensation for losses incurred during the security breach.
Valuable Insights from Patricia’s Strategy
- Converting affected assets into a native token can serve as immediate liquidity assurance.
- Compensating customers post-hack with stable tokens might help in restoring trust.
- Transparent communication is crucial in retaining customer confidence during crises.
Hanu further provided updates on the legal proceedings following the hacking incident. He confirmed that security agencies were actively investigating and expected justice to be served against the perpetrators involved. In November 2023, a breakthrough occurred when the Nigeria Police Force arrested a politician linked to the theft of funds from Patricia’s crypto wallet, highlighting the ongoing efforts to address cyber crimes effectively.