Based on several local reports, DLM Trust came out on October 26 2023 to refute media claims that it had entered a partnership with the beleaguered Nigerian crypto company, Patricia Technologies.
DLM Trust, which provides trust services to individuals, corporations, sub-sovereign, and federal government agencies, was appointed as Escrow Trustee by Patricia to coordinate the management and disbursement of customers’ funds in Naira, in an Escrow Agreement dated October 18 2023 (the “Agreement”).
However, the company cancelled the arrangement citing ‘multiple breaches in the terms and conditions of agreement and trust.
On this note, DLM Trust Company in accordance with clause 20 of an Agreement signed between DLM Trust Company and Patricia Technologies which stated that the agreement should not be construed as a partnership by any of the parties; announces its termination as Escrow Trustee to Patricia Technologies and dissociates itself from the townhall session announcement, which Patricia has circulated through emails to customers.
– DLM Trust
Still, Patricia says that the repayment plan initiated along with DLM Trustees will go on as scheduled starting on November 20 2023.
“We wish to assure you that notwithstanding this regrettable development, all scheduled payments will proceed, starting from the 20th as initially planned.”
“It is therefore astounding to us that not only have DLM Trustees chosen to renege on our agreement, but that they failed to issue us a notice or extend the basic courtesy of a prior discussion, in stark disregard for the clearly spelled termination clause in our contract. We not only categorically reject this false claim, but we also challenge DLM Trustees to substantiate the allegations.”
Patricia Statement
DLM’s sudden change in direction occured just two days before Patricia’s scheduled virtual town hall meeting during which she intends to address the partnership with the company’s customers. Patricia will have a harder time convincing frustrated customers who want access to their money after the trading platform lost $2 million to a hack last year.
Townhall update 🔔
Join us this Friday, October 27th, 2023, from 2 p.m. for an exclusive town hall meeting where we will be keeping you up to date with everything Patricia, the DLM partnership, and all you need to know. pic.twitter.com/y6t2T29pfc
— Patricia (@PatriciaSwitch) October 25, 2023
Starting in April 2023, customers have faced issues withdrawing funds from the Patricia Plus app resulting in a situation akin to a bank run. Patricia took immediate action to mitigate the panic by temporarily suspending withdrawals and restricting customers from accessing their assets.
See also
To address the crisis, the company decided to unilaterally transform its customers’ assets into tokens (The Patricia Token ($PKT), a move which raised concerns and has increased pressure from customers.
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