Bybit has announced internal role adjustments for numerous executives subsequent to a mishandled airdrop impacting 320,000 users and resulting in a $26 million compensation disbursement.
Following a flawed airdrop that led to over $26 million in compensation to users, several executives at the crypto exchange Bybit have transitioned to different roles. Reports regarding these leadership changes emerged on May 31. A spokesperson for Bybit informed Cointelegraph that the company has revised its business structure in response to the incident.
The alterations come in the wake of the unsuccessful Notcoin (NOT) airdrop, which is a play-to-earn game and token integrated within a Telegram Mini App. Bybit clarified in a statement that the delay in the airdrop was due to system maintenance and an unexpectedly high transaction volume.
The postponement in token distribution resulted in a reduced trading price for individuals who received their tokens at a later stage. The imbalance problem impacted 320,000 users, as reported by the exchange. Bybit unveiled a compensation scheme worth $26 million on May 17 in response to the incident.
“Bybit’s CEO, Ben Zhou, assured that the total compensation of approximately $26 million will be processed within three working days, with emails promptly sent to recipients. He expressed regret for any inconvenience caused and emphasized that internal investigations will be conducted to prevent such occurrences in the future.”
During a challenging month for the exchange, Zhou addressed rumors circulating on X on May 22, clarifying that Bybit was neither insolvent nor hacked. These rumors stemmed from a misinterpretation of a chart suggesting a drain on the exchange’s wallets. Bybit responded by providing proof of reserves and sharing data from a Nansen dashboard, indicating it holds over 100% of the assets required to cover all deposits.
Earlier, on May 16, Bybit encountered regulatory hurdles in France, where the Autorité des Marchés Financiers (AMF) reiterated its warning that the exchange is blacklisted in the country.
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