A renowned Nigerian platform called Patricia made a disheartening announcement on May 26th. They disclosed that a group of hackers had successfully infiltrated their retail trading application, resulting in an unfortunate compromise of an undisclosed sum of BTC and naira assets.
Fortunately, the breach did not impact any other crypto balances, as confirmed by a recent update from Patricia. Despite this setback, Patricia assured the public that the assets belonging to their valued customers and trusted merchants remain completely secure.
Patricia’s Response to the Situation
In response to the recent breach, Patricia has taken swift action to address the situation. They have decided to embark on an internal restructuring process and have temporarily halted withdrawals on both their mobile and web applications.
The Nigerian platform acknowledges the impact this may have had on their customers and expressed genuine gratitude for their patience during this inconvenience. Currently, the platform is diligently working towards fortifying its security measures, ensuring a safer and more robust platform for all users.
The Platform’s Efforts to Catch the Perpetrator
Following the breach, Patricia’s diligent security team, in collaboration with local law enforcement has made significant progress. They have successfully identified an individual believed to be associated with the group responsible for the hacking incident.
Patricia has been quite resolute in its efforts to resolve the matter and has vowed to pursue this lead aggressively. The crypto platform is working hand in hand with security agencies, pooling their expertise and resources to ensure the recovery of compromised assets.
The Nigerian platform’s unwavering determination and cooperative approach demonstrate its commitment to customers’ protection and the restoration of their assets.
Nigeria is no Stranger to Hacks and Breaches
Back in February, Flutterwave, a prominent Nigerian fintech company, faced an unfortunate incident where it was allegedly exploited, resulting in a substantial loss of approximately 2.9 billion nairas.
This incident caught the attention of the Central Bank of Nigeria, prompting them to take immediate action. The CBN swiftly flagged bank accounts in response to the hack, aiming to identify and bring the culprits to justice.
It’s important to note that the CBN does not consider cryptocurrencies as legal tender. In fact, as early as February 2021, the CBN had already placed a ban on commercial banks in Nigeria, prohibiting them from engaging in cryptocurrency transactions.
This decisive move was taken by the CBN with the intention of safeguarding the citizens from potential risks associated with illicit crypto activities in the black market.
By disassociating the financial system and banking sector from crypto trading, the central bank of Nigeria aims to shield the public from falling victim to criminal and fraudulent practices present in the crypto realm.
A Potentially Self-Inflicted Breach
In April, Patricia introduced a fresh version of its app, known as Patricia Plus, and eagerly made it available to users. The company took to Instagram to express the necessity of this update, attributing it to a global congestion issue on the Bitcoin blockchain.
Loads of users downloaded the new app, which boasted the advantage of unrestricted withdrawals. However, within a matter of minutes, a flurry of users began transferring their coins to external wallets, prompting Patricia to swiftly impose a freeze on withdrawals.
This situation was quite similar to a bank run, stirring concerns about liquidity. Some sources revealed that the company’s custodial wallet was reported to have a deficit of 75 BTC, though Patricia refrained from commenting on these claims.
Instead, they communicated with their customers via email, informing them about ongoing internal restructuring without delving into specific details.
Though the restructuring plans remained undisclosed, reports surfaced that management recently held a meeting to address the liquidity predicament. During this gathering, the company’s leadership candidly discussed the liquidity situation, and it was revealed that there could be a big round of layoffs.