Patricia – a Nigerian gift card and crypto trading platform – has encountered a security vulnerability that requires immediate action to protect its users. As a precaution, the platform has temporarily suspended the withdrawal of funds.
The company announced that it was the victim of a security breach that put its bitcoin (BTC) and naira assets at risk. The message sent to users states that other cryptocurrencies and customer funds are unaffected by the breach. However, customers cannot withdraw funds from the platform as it is “under an internal restructuring”.
Although Patricia did not disclose the extent of the assets affected by the breach, it emerged that with the help of law enforcement, one individual from the syndicated group had been identified as the perpetrator of the breach. It said it would continue to work with law enforcement and other partners to recover the assets.
Since the suspension of withdrawals on the platform, its users have taken to Twitter to voice their opinions, citing inconveniences. Still, the company emphasizes its ongoing efforts to improve the platform’s security measures.
The specific individual within the group was reportedly identified through compromised naira assets, with most of the naira assets linked to that individual.
In order to increase the security of the platform, the company hired the services of a security company to conduct an audit. As soon as the affected branch of the company – Patricia Personal – is licensed to operate, customers will be able to withdraw their funds again.
Related: Nigeria goes blockchain: Politics could impact digital identity
In February, a Nigerian fintech company, Flutterwave, was reportedly exploited to haul nearly 2.9 billion naira ($6.3 million). The Central Bank of Nigeria (CBN) began flagging bank accounts in response to the hack and in an attempt to catch the culprits.
The CBN does not recognize cryptocurrencies as legal tender. In February 2021, the CBN banned commercial banks in Nigeria from conducting cryptocurrency transactions. To protect citizens from criminal and fraudulent crypto activities on the black market, the CBN clarified that the financial system and banking sector would not be associated with cryptocurrency trading.
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