Patricia, a Nigeria-focused crypto platform, has partnered with DLM Trust, an SEC-licensed trust company, to facilitate the repayment of $2 million in customer funds lost to a hack last year. DLM Trust will act as an escrow trustee, managing the disbursement process as a neutral third party.
The first batch of repayments is scheduled to begin on November 20, 2023. Kehinde Lawal, a senior associate at DLM Trust, confirmed that Patricia has already transferred some funds to initiate the repayment process. Patricia’s CEO, Hanu Fejiro, previously indicated that funds raised from partners and investors would support the repayment effort.
DLM Trust emphasized that while it does not handle digital assets due to the SEC’s strict stance against cryptocurrency, it will manage the financial aspects of the repayment plan. The SEC has maintained that tokenized coin offerings must be backed by tangible assets like equity or debt, excluding cryptocurrency.
Patricia has also proposed a plan allowing users to convert their debt tokens into company shares managed by an SEC-licensed entity. Lawal stated that this option is voluntary and forms part of Patricia’s broader debt management strategy.
This initiative represents Patricia’s latest effort to address the fallout from the hack and restore customer confidence, although challenges remain due to regulatory complexities and user skepticism. Further details about the repayment process and equity conversion are expected in the coming days.
