Cryptocurrency News

Patricia exchange CEO announces debt restructuring via convertible notes

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Following the launch of Patricia token (PTK) issued to customers to manage users’ debt by Patricia, a Nigerian cryptocurrency exchange, the chief executive officer of the exchange (CEO), Fejiro Hanu, has confirmed that customers now have the option to convert their owed funds into Patricia shares.

According to a statement from the CEO, 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 in preparation for its fundraising initiative, it is affording its users the opportunity 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 Securities Exchange Commission (SEC)-licensed trusted third-party trustee to ensure complete transparency.

However, this option doesn’t seem to agree with some agitated users who took to a Patricia affiliated outlet to make their case heard but met no one. In a video making rounds on X social platform (formerly known as Twitter) the agitated users are seen hanging around the empty building and making statements reflecting their dissatisfaction with the situation of things.

Speaking with Cointelegraph, Hanu stated that the video content is misleading and mischievous as the firm runs a full 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 as Patricia does not actively operate from that office.

When asked about the current solution for users who are still unable to withdraw their funds, Hanu stated that the Patricia app that is about to relaunch is currently at Beta testing, and invites were extended to customers to experience the app before opening to the public. Few customers who opted for the testing process are currently getting their PUTX redeemed.

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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 asserting that customer funds remained unaffected, platform users have faced ongoing difficulties in accessing their funds since April.

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