Nigerian gift card and cryptocurrency trading platform Patricia experienced a security breach, prompting immediate steps to protect its users. As a precautionary measure, the platform has suspended withdrawals.
The company announced that it was the victim of a security breach that compromised its Bitcoin and naira assets. In a message to users, it said other cryptocurrencies and customer funds were not affected by the breach. However, customers were unable to withdraw funds from the platform due to "an ongoing internal restructuring."
While Patricia did not disclose the extent of the assets damaged in the breach, it revealed that with the help of law enforcement, one of the individuals in the syndicate who carried out the breach had been identified. It said it would continue to work with law enforcement and other partners to recover the assets. Since the platform suspended withdrawals, its users have taken to Twitter to voice their opinion, citing the inconvenience. Nonetheless, the company emphasized that it is working to strengthen the platform's security measures.
According to reports, the specific person within the organization was identified through damaged naira assets, most of which were linked to this individual. In order to strengthen the security of the platform, the company has commissioned a security company to conduct an audit. Once the affected business unit - Patricia Personal - is cleared to operate, customers will regain the ability to withdraw funds. In February, Flutterwave, a Nigerian fintech company, was allegedly robbed of nearly 2.9 billion naira ($6.3 million). The Central Bank of Nigeria ( CBN) has started flagging bank accounts in response to hacking attacks and in an attempt to apprehend criminals.
CBN does not recognize cryptocurrencies as legal tender. In February 2021, the CBN banned commercial banks in Nigeria from dealing in cryptocurrencies. In order to protect citizens from black market crimes and fraudulent cryptocurrency activities, CBN made it clear that the financial system and banking industry will not be linked to cryptocurrency transactions.
