Nigerian gift card and crypto trading platform, Patricia, has temporarily suspended fund withdrawals after a security breach compromised its Bitcoin and naira assets. The company, in a message to its users, revealed that it had identified an individual involved in the breach with the help of law enforcement. Patricia assured its customers that it was working diligently with law enforcement and other partners to recover the compromised assets.
Nigerian Crypto Platform, Patricia, Strengthens Security
While Patricia, a Nigerian crypto platform, did not disclose the exact extent of the breach, it confirmed that other cryptocurrencies and customer funds remained unaffected However, users expressed their concerns on social media platforms, particularly Twitter, regarding the suspension of fund withdrawals and the inconveniences it caused. In response, Patricia emphasized its commitment to enhancing the platform’s security measures to prevent future breaches.
The identification of the individual responsible for the breach was reportedly made through compromised naira assets. With a significant portion of those assets being traced back to the identified person. In order to bolster the security of the platform, Patricia has enlisted the services of a security firm to conduct a comprehensive audit. Once Patricia Personal, the affected arm of the business, receives clearance for operations, customers will regain their ability to withdraw funds.
Comprehensive Audit by Security Firm
This security breach comes after a similar incident in February involving Nigerian fintech company Flutterwave. It was allegedly exploited for approximately 2.9 billion nairas ($6.3 million). In response to the hack, the Central Bank of Nigeria (CBN) began flagging bank accounts to track down the culprits.
It is worth noting that the CBN does not recognize cryptocurrencies as legal tender. It banned commercial banks in Nigeria from engaging in cryptocurrency transactions in February 2021. Additionally, the CBN’s decision was aimed at protecting citizens from criminal activities associated with the black crypto market. Furthermore, the regulatory body made it clear that the financial system and banking sector would not facilitate cryptocurrency trading.
Furthermore, Patricia’s security breach serves as a reminder of the persistent challenges faced by crypto platforms in safeguarding user assets. As the popularity of cryptocurrencies continues to grow. It is crucial for companies in the industry to invest in robust security measures. Adhere to regulatory guidelines to protect their users. Also, maintain trust in the digital asset ecosystem.