Following a flawed airdrop that resulted in over $26 million in compensation to users, several executives at the crypto exchange Bybit have changed positions. Reports of these leadership changes emerged on May 31, with a Bybit spokesperson stating that the company regularly updates its business structure. The spokesperson emphasized the importance of placing the right people in the right roles, leading to these leadership adjustments. The affected team members are not leaving the company but are transitioning to different internal positions.
The airdrop mishap involved Notcoin (NOT), a play-to-earn game and token integrated as a Telegram Mini App. Bybit attributed the delay in the airdrop to system maintenance and an unexpectedly high transaction volume. As a result, users who received their tokens later experienced a lower trading price. This issue impacted approximately 320,000 users. To address the situation, Bybit announced a $26 million compensation plan on May 17, with CEO Ben Zhou apologizing for the problem and committing to prevent its recurrence.
The exchange faced further challenges in May, with rumors circulating on May 22 alleging Bybit's insolvency or hacking.
CEO Zhou clarified these rumors by providing proof of reserves and data demonstrating that Bybit holds over 100% of all assets required to cover deposits. Additionally, Bybit encountered regulatory hurdles in France on May 16, with the Autorité des Marchés Financiers (AMF) reaffirming that the exchange is blacklisted in the country.
June 2024, Cryptoniteuae