Crypto

Patricia exchange CEO announces debt restructuring via convertible notes


Following the launch of Patricia Token (PTK) issued to customers by Patricia, a Nigerian cryptocurrency exchange, its CEO, Fejiro Hanu, has confirmed that customers now have the option to convert their owed funds into Patricia shares.

According to a statement from Hanu, this process forms an integral component of the firm’s strategy for fundraising and reorganizing its debts. In anticipation of the firm’s upcoming app relaunch and preparation for its fundraising initiative, it allows its users to transform their debt tokens into convertible notes at a favorable discount in Patricia.

He also revealed that these shares will be managed by a Nigerian Securities and Exchange Commission (SEC)-licensed trusted third party to ensure complete transparency.

However, some users are not happy with the move. In a video making the rounds on X (formerly Twitter), the agitated users are seen at a building where the company is located, demanding their money.

Speaking with Cointelegraph, Hanu stated that the video content is misleading and mischievous as the firm runs an entirely remote structure. He stated that the office in the video is an innovation hub set up and announced in 2022 to offer free working spaces to developers and crypto enthusiasts and that Patricia does not operate from that office.

When asked about the current solution for users who cannot withdraw their funds, Hanu stated that the Patricia app is about to be relaunched and is currently in beta testing. He added that invites were extended to customers to experience the app before opening to the public. Some customers who opted for the testing process are getting their Patricia Token (PUTX) redeemed, which is the exchange’s internal debt management token.

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According to Hanu, Patricia users have also notified customers of the plan to redeem their balances in batches as soon as the firm reopens.

This development follows the company’s previous disclosure of a security breach resulting in fund losses in May 2023. Despite claiming that customer funds remained unaffected, platform users have faced ongoing difficulties accessing them since April.

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