Troubled cryptocurrency exchange Patricia seems to have fallen short of its commitment to facilitate withdrawals for a group of customers today. Last week, it was reported that Hanu Fejiro, the CEO of Patricia, revealed the company’s plans to initiate the first phase of customer payments on Monday, November 20.
Despite the announcement, as of 7 pm West African Time on the specified date, Patricia customers we spoke to reported that they have been unable to withdraw funds from the platform.
Furthermore, a user took to Twitter to express dissatisfaction with the lack of access to funds as promised. According to the user, around 1000 customers are part of a Telegram group, and none of them has received any updates as of the evening of Monday, November 20.
“He Fejiro said Patricia is going to commence payment today, but hell no, that stupid app is still under lock and key. No emails have been sent, there’s like 1 thousand of us in a group and none of us have received any form of text or email,” the user stated.
He @Fejizzy said @PatriciaSwitch is going to commence payment today but hell no, that stupid app is still under lock and key 🔐 no email have been sent, there’s like 1 thousand of us in a group and non of us have received any form of Text or email. pic.twitter.com/1SQ8yytcN7
— Killihitman (@killihitman) November 20, 2023
The Present Situation of Patricia
To address the situation, the company initially attempted to convert the loss into debt tokens, facing significant backlash from users. When this approach failed, Patricia decided to convert the debts into equity, giving customers ownership of the company.
Hanu Fejiro confirmed that this move was part of the company’s strategy for fundraising and debt reorganization. He stated that the idea was suggested by numerous users and was not mandatory. Additionally, he mentioned that the company was working with an SEC-approved company, DLM Trust, to act as an escrow in managing repayments for customers who declined the equity offer.
However, DLM Trust recently dissociated itself from Patricia, leading to a statement from Patricia Technologies expressing surprise at the sudden termination of the partnership. Despite this setback, the company assured depositors and stakeholders that the repayment plan would proceed as scheduled.
In a private conversation last week, Hanu Fejiro reiterated that customer withdrawals would begin on November 20, emphasizing the challenges the company is facing but assuring that repayments would occur as more funds are raised and gains from operations are realized.
However, as the agreed-upon day came to a close, customers reported no signs of withdrawals.