Embattled crypto company, Patricia has stated that the $2 million in client cash lost in a hack will be repaid to users using a newly constructed debt management token called the Patricia token.
The tokens—which are the dollar equivalent of the assets of the respective customers—will be locked by a smart contract, according to Patricia’s white paper, and will be gradually released on a monthly basis.
Customers will only receive their money back if Patricia is profitable, even though the company did not set the token’s vesting period.
“This [smart] contract will lock the tokens and gradually release them based on the exchange’s profitability. This approach aligns users’ compensation with the success of the platform, promoting transparency and trust,” Patricia white paper stated.
“Our OTC Desk has been fully operational, and it is growing and bringing in revenue. We are totally confident in the redemption of Patricia tokens and that we will be able to pay our customers with the proceeds from our operations and our fundraising efforts.” Patricia CEO, Hanu Fejiro, told TechCabal.
He continued, is “working with legal partners and the product team on measures to launch a feature that guarantees transparency.”
Since the company changed the money in consumers’ wallets to the Patricia token, Patricia has been in the centre of the maelstrom. The startup hopes to be like Bitfinex, a cryptocurrency exchange platform that recovered 119,756 bitcoins using debt management tokens eleven months after they had been stolen in a breach.