A Nigerian digital asset trading platform, Patricia, has sparked fears of an exit scam after it introduced a native token and converted all user deposits into tokens deemed to have little value. Operating from Lagos, Patricia had previously disclosed being targeted by a hack earlier in the year, with details such as the date, stolen amount, and reporting to authorities still undisclosed. This incident led to a suspension of withdrawals, causing distress among its users.
Several months later, Patricia has taken steps to rectify the situation by launching a new native token, accompanied by a revamped mobile app. In addition to using the new token for reimbursing users who suffered losses due to the hack, the platform is also imposing the token on its other users.
Patricia’s announcement entails the automatic conversion of all outstanding BTC and Naira balances to the PTK token without requiring user consent. The PTK token is purportedly a stablecoin that is tied to Tether, another stablecoin with a questionable history. Patricia characterizes it as a “debt instrument” designed to ensure the accountability of customer assets and initiate the path to asset recovery.
A notable concern is that PTK will not be issued on-chain. The company clarified in its white paper that the Patricia Token remains off-chain and serves as an internal token utilized to represent debt. Its value will mirror the dollar equivalent of the converted assets. Additionally, the company claims that it will gradually release these tokens based on its profitability.
The launch of the new token has triggered strong resistance among Patricia’s users. Many have taken to social media to express skepticism towards the project, branding the new token as part of an exit scam scheme.
Throughout the years, African investors have frequently fallen victim to digital asset scams, resulting in significant financial losses. Chainalysis data indicates that scams involving investments, romance, and giveaways have been the most prevalent. Notably, the South African scam Africrypt holds the record for the continent’s largest scam. Allegedly orchestrated by two siblings aged 18 and 21, the scam reportedly defrauded high-net-worth individuals and celebrities, amounting to a staggering $3.6 billion.