Nigerian crypto company Patricia reaffirms its commitment to repaying customer funds, despite the unexpected termination of its partnership with escrow trustee DLM Trust. Patricia had initially engaged DLM Trust to manage the repayment of $2 million in customer funds lost to a hack. However, one day after the partnership announcement, DLM Trust, a SEC-licensed trust company, abruptly severed ties with Patricia, citing “multiple breaches in the terms and conditions of the agreement and trust.” According to an insider, media backlash played a role in DLM Trust’s sudden withdrawal.
Patricia expressed its surprise at DLM Trust’s decision to terminate the partnership without prior notice, stating that it had diligently followed all required processes, including meeting its financial obligations to fulfill the contract.
DLM’s reversal occurs just two days before Patricia’s scheduled virtual town hall meeting to address the partnership with its customers. This development poses a challenge for Patricia, which is already struggling to regain the trust of frustrated customers seeking access to their funds following last year’s hack. Since April, customers have been unable to withdraw funds from the Patricia Plus app, leading to concerns of a bank run. In response, Patricia froze withdrawals and blocked customers access to their assets.
In an attempt to address the situation, Patricia unilaterally converted customer assets to tokens without user consent, raising legal concerns. Despite holding town hall meetings and presenting multiple plans for repaying customers, Patricia faces skepticism from its user base. Some customers have even started discussing plans for peaceful protests to demand the release of their withheld funds.