Nigerian crypto company suspends withdrawals after BTC and naira compromise

Patricia, a Nigerian platform for gift card and crypto trading, has experienced a security breach, leading to immediate actions to protect its users. As a precaution, the platform has temporarily halted fund withdrawals.

The company disclosed that it fell victim to a security breach compromising its Bitcoin (BTC) and naira assets. However, other cryptocurrencies and customer funds remain unaffected. While the extent of the compromised assets was not disclosed, Patricia has identified one individual involved in the breach with the assistance of law enforcement. It intends to collaborate with authorities and partners to recover the assets.

Although Patricia users have expressed their inconveniences on Twitter due to the suspension of withdrawals, the company emphasizes its continuous efforts to enhance the platform’s security measures. The identification of the individual responsible for the breach was made through compromised naira assets, primarily linked to that person.

To bolster platform security, Patricia has engaged a security firm to conduct an audit. Once the affected division, Patricia Personal, receives clearance to resume operations, customers will regain the ability to withdraw their funds.

In February, another Nigerian fintech company, Flutterwave, reportedly suffered a hack amounting to nearly $6.3 million (2.9 billion nairas). In response, the Central Bank of Nigeria (CBN) flagged bank accounts and sought to apprehend the culprits.

It’s worth noting that the CBN does not recognize cryptocurrencies as legal tender. In February 2021, the CBN banned commercial banks in Nigeria from engaging in any cryptocurrency transactions. This measure aimed to protect citizens from criminal and fraudulent activities associated with the crypto black market. The CBN made it clear that Nigeria’s financial system and banking sector would not be involved in cryptocurrency trading.

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