Nigerian crypto platform, Patricia has converted all outstanding Bitcoin and naira balances in every user’s wallet to the company’s token.
The BTC and other tokens its users possess have been changed to the Patricia Token or PTK via the retail trading software Patricia.
PTK was characterised as a stablecoin backed by the dollar in a statement on Friday announcing the launch of its new app, Patricia Plus, with 1PTK being equal to $1.
Patricia suspended withdrawals for platform customers in May after disclosing that it had experienced a hack. The business informed clients that it had lost an undisclosed amount and claimed that assets in Bitcoin and naira had been compromised.
Ironically, the April release of the Patricia Plus app resulted in a very reminiscent of a bank run. The new software did not have the withdrawal limits that the old app did, and many users immediately tried to shift their monies. Like most bank runs, the retail trading software lacked the quick liquidity to address such requests.
The decision to convert customer assets to the business’ stablecoin is an effort to address the issue since many consumers have been unable to access their money since April. However, the action creates a lot of concerns, and it is unlikely that this will allow clients to retrieve their funds.
Patricia committed a breach by failing to protect its customers’ assets, which is a centralised exchange’s principal responsibility. As a result, Patricia is now in a position where it will be difficult to recover its customers’ funds.
