Nigerian Crypto Trading Platform Unilaterally Converts User Funds to New Stablecoin — Move Sparks Exit Scam Fears

A Nigerian crypto trading platform, Patricia, announced connected Aug. 18 that it had converted users’ outstanding funds to its U.S.-backed stablecoin known arsenic “Patricia Token.” Some societal media users person slammed the crypto trading platform’s unilateral determination to person lawsuit funds. Some critics person characterized the conversion of idiosyncratic funds arsenic the Patrica team’s effort to exit scam users.

$2 Million Reportedly Lost successful Hacking Incident

The Nigerian acquisition paper and crypto trading platform, Patricia, precocious converted idiosyncratic funds to a stablecoin known arsenic patricia token (PTK). According to a report, the determination to person idiosyncratic funds was made unilaterally and conscionable implicit 3 months aft Patricia reportedly mislaid $2 cardinal successful an evident hacking incident.

Say hullo to stability, innovation, and your summons to a seamless fiscal journey. pic.twitter.com/F0Q8G6eFJ3

— Patricia (@PatriciaSwitch) August 18, 2023

As reported by Bitcoin.com News successful May, the crypto level was breached and according to Patricia BTC and naira assets were compromised. At the time, Patricia froze withdrawals and issued a connection which sought to reassure users disquieted astir the presumption of their funds.

However, according to a Techcabal report, Patricia users were inactive capable to retreat funds via the crypto trading platform’s precocious launched merchandise Patricia Plus. Still, the caller merchandise could not process each withdrawal requests.

Exit Scam Fears

In a station connected the societal media level X, the crypto trading radical framed the plus conversion arsenic a measurement that enables users with outstanding balances to withdraw. Patricia besides claimed that the PTK stablecoin is backed by the U.S. dollar. A Techpoint report said the conversion of idiosyncratic funds to the stablecoin has raised fears that the Patricia squad whitethorn beryllium preparing to bash an exit scam.

Meanwhile, immoderate users of X person accused Patricia of attempting to defraud users by swapping their assets with worthless tokens. One idiosyncratic named Somto suggested that the crypto level has itself to blasted aft it wasted wealth sponsoring the fashionable Nigerian world tv amusement Big Brother Naija.

“Instead of utilizing your liquidity to physique your brand, you chose to walk billions sponsoring BBN and present you’re astir to wreck investors lol. I ne'er had immoderate relationship with you guys truthful bully luck to everyone involved,” the X idiosyncratic said.

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