by Jude Ayua

In a recent update, Patricia Technologies reaffirmed its commitment to refunding its subscribers who were,  reportedly, victims of a cyber breach against the company in 2023. “We committed to a 2–5 year repayment plan … and we remain steadfast in fulfilling that promise,” Patricia informed affected subscribers, stating that refunds began on 10 December 2024. 

The refunds will be in batches; those who are not in the current batch will be contacted and will be included in subsequent ones. “We are adhering to the repayment plan and remain committed to redeeming our pledge to every user,” Patrica noted in the update. “We deeply regret any inconvenience this may cause and respectfully ask for your continued understanding as we work to meet our obligations,” Patricia persuaded subscribers.

The breach and recovery efforts

Patricia is a payment solutions company that facilitates cryptocurrencies transactions with offices in Lithuania, Canada, and South Africa. It operates three unique services: Patricia Personal, Patricia OTC Desk, and Patricia Business. Initially domiciled in Nigeria, the company moved its head office to Europe in 2021, following the Central Bank of Nigeria’s restriction on cryptocurrency transactions.

In May 2023, a cyber breach reportedly hit Patricia which affected Patricia Personal, its retail trading application, compromising bitcoin (BTC) and Naira (₦) assets on the platform. Following the breach, Patricia suspended withdrawals on all its platforms to complete internal restructuring.

Read also: Patricia crypto exchange breach: Industry stakeholders react.

Patricia announced that it reported the breach to the Nigeria Police Force (NPF) which investigated it as a cybercrime through its National Cybercrime Center (NPF-NCC).  Eventually, NPF operatives arrested one Wilfred Bonse, identified as a central figure in the crime, allegedly, following investigations. The NFC accused Bonse, alongside accomplices who were at large, of modifying computer systems and diverting funds worth ₦607 million from Patricia’s accounts through unauthorized cryptocurrency transactions.

Patricia CEO Hanu Fejiro Agbodje, at the conclusion of the Police investigation and arrest of Bonse, remarked:

“This is a big relief. We have finally been vindicated as not a few disbelieved us that our platform was hacked in the first place. But thanks to the diligence of the Nigerian Police and the unwavering commitment of my colleagues, we are delighted that our customers now have more reason to continue to trust us.”

Read also: Patricia crypto-exchange hackers caught; to be arraigned, announces CEO, Hanu Agbodje.

DLM Trustees frustrated Patricia’s repayment plan

Patricia initially planned the repayment of affected subscribers to begin in November 2023 in partnership with DLM Trustees. However, in an unanticipated turn of events, DLM Trustees, whom Patriicia contracted to facilitate the repayment plan, terminated the partnership. Patricia expressed shock at DLM’s decision, noting that the termination was without prior notice. Patricia emphasized its adherence to the partnership obligations, including transferring substantial funds to DLM Trustees for the planned payouts.

“We wish to assure our depositors and stakeholders that the Repayment plan we initiated along with DLM Trustees a few days ago, will go on as scheduled… Our commitment to our customers remains steadfast…” Patricia informed subscribers in a statement following the termination. “This is another opportunity to show our resilience as an organization,” Patricia added.

One year later, Patricia has followed up its commitment and began fulfilling its promise of repayment to affected subscribers. With the refund efforts ongoing, the company is optimistic about redeeming its reputation, rebuilding trust in its subscribers and the public.

Crypto-related cyber crimes have a devastating effect on the cryptocurrency market, especially in developing jurisdictions like Nigeria. These crimes potentially hinder adoption and cause increased restrictions by regulators and law enforcement agencies. With strong compliance measures like anti-money laundering and know-your-customer, enhanced security, and collaboration with law enforcement agencies, virtual assets platforms can mitigate risks of cyber frauds and protect their users.

Read also: Top 4 Safety Tips in Crypto Investment You Should Know

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com

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