Patricia, the Nigeria-focused crypto platform, has taken a significant step to make amends to its customers following a hacking incident that cost them $2 million in assets last year. In a recent move, the company has enlisted the services of DLM Trust, a trust company that holds an SEC license, to oversee the disbursement of repayments to its customers.
DLM Trust, a trustworthy entity sanctioned by Nigeria’s Securities and Exchange Commission (SEC), has been tasked with the responsibility of ensuring that Patricia’s users are duly compensated. This crucial partnership was officially confirmed in a statement released on Nairametrics earlier this week. As part of their role, DLM Trust will act as an escrow trustee, serving as the impartial third party responsible for holding and managing the funds and assets involved in this transaction.
According to the information provided in DLM Trust’s statement, the initial wave of repayments to Patricia’s valued customers is scheduled to commence on November 20, 2023. Kehinde Lawal, a senior associate at DLM Trust, shed some light on the progress, revealing that Patricia has already allocated some funds to expedite the refund process for its customers. This development was initially reported in September, with Patricia securing financial support to facilitate these reimbursements. However, Hanu Fejiro, the CEO of Patricia, has chosen to keep the details of this investment discreet.
Lawal further elaborated on the source of these funds, stating, “The funds are coming from Patricia and its partners/investors. We are acting as a trustee, ensuring that we make prompt payments to the customers. We will soon unveil the payment plan and disbursement strategies to the users.”
Nonetheless, it’s worth noting that this repayment plan is not without its complexities, mainly due to the fact that DLM Trust does not typically manage digital assets, and the stance of its regulator, the SEC, regarding cryptocurrency remains uncertain. In a report back in May, Bloomberg suggested that the SEC was contemplating the possibility of permitting tokenized coin offerings on licensed digital exchanges, as long as these offerings were backed by traditional assets such as equity, debt, and property, excluding cryptocurrency.
In recent developments, Patricia’s CEO, Hanu Fejiro, has confirmed that the platform is encouraging its users to convert their debt tokens into company shares, which will be overseen by an SEC-licensed entity. Lawal revealed that these plans are still a work in progress, stating, “There have been discussions around converting debt to equity. It’s entirely at the discretion of the users and forms a critical part of our overall debt management strategy. This process is currently in motion.”
In essence, Patricia’s collaboration with DLM Trust signals a pivotal step towards rectifying past grievances, although it navigates some regulatory complexities, including the handling of digital assets and evolving SEC guidelines surrounding cryptocurrency. The forthcoming conversion of debt tokens to company shares further underscores Patricia’s commitment to delivering a comprehensive and equitable repayment strategy for its valued customers.
