Nigeria Patricia Technologies Faces Backlash as Customers Reject Debt-to-Equity Conversion Offer

Nigeria's crypto trading company, Patricia Technologies, finds itself in hot water as its move to convert customers' assets into equity shares has been met with strong resistance. Customers who received the offer letter, signed by Patricia's founder, Hanu Fejiro, have voiced their discontent, refusing to sign the agreement that would effectively transfer their assets to the company.

The customers' main objection to the offer is the fear of losing control over their funds. They are adamant about having their crypto assets returned to them in their original form, rather than converted into Patricia Coin without their consent.

Patricia Technologies justified its debt-to-equity conversion by citing a system hack earlier this year, which resulted in the loss of approximately N2 billion in customer assets. In response, the company decided to convert the assets into its proprietary token, Patricia Coin. However, customers have rejected this explanation, alleging fraud and insisting on the return of their original assets.

In response to the contentious proposal, some customers have organized a peaceful protest in Lagos, scheduled for October 24, 2023. Patricia Technologies has reportedly attempted to dissuade customers from protesting, fearing that it might deter potential investors from engaging with the company. The customers, however, remain resolute in their decision to protest, frustrated by the lack of progress and communication from Patricia Technologies. They argue that if the protest has the potential to pressure investors into bringing money, it is a worthwhile endeavor.

Patricia Technologies had previously sent an offer letter titled "Offer to Convert Debt to Equity in Patricia Technologies Limited" to customers. The letter provided customers with the option to convert their debt into equity, effectively making them shareholders in the company.In a statement, Patricia Technologies clarified that it operates with a fully remote structure and does not maintain a physical office in Nigeria. The company moved its headquarters to Vilnius, Lithuania, in response to Central Bank of Nigeria (CBN) regulations initiated in 2021. Patricia assured customers that it was actively working to address the discomfort caused by their inability to access their funds and is committed to resolving the issue.

Earlier this year, Patricia Technologies unilaterally converted customers' crypto and cash assets into Patricia Token following a cyberattack. The company emphasized that the Patricia Token represents a promise to pay holders 1 USDT for each Patricia Token in the future, ensuring asset recovery and addressing the security breach's impact. It is important to note that Patricia Token is not on-chain but an internal token used to represent debt, managed by the company.