Crypto exchange Bybit has announced internal role changes for several executives following a flawed airdrop that led to a $26 million compensation payout to users. The incident affected 320,000 users, prompting the company to reevaluate its leadership structure.
Background of the Airdrop Issue
Reports of the leadership shuffle emerged on May 31. Bybit confirmed the changes to Cointelegraph, emphasizing that the company routinely updates its business structure. A Bybit spokesperson stated, “Together with the team, we made a joint commitment to placing the right people in the right roles. […] This improvement led to some leadership role changes, which we believe are essential. […] The affected team members are not leaving the company but moved to take up other internal roles.”
The airdrop in question involved Notcoin (NOT), a token integrated into a play-to-earn game available as a Telegram Mini App. Bybit explained that the airdrop was delayed due to system maintenance and an unexpectedly high volume of transactions. The delayed distribution caused a significant drop in the trading price for users who received their tokens later.
Compensation Plan and Company Response
In response to the distribution issue, Bybit announced a $26 million compensation plan on May 17. CEO Ben Zhou assured users, “Total around $26M compensation will be processed within 3 working days, emails will be sent to you. Again, sorry for the problem caused, we will do a deep dive internally to make sure it never happens again.”
Also Read: Binance, OKX, and Bybit Lead Growth in Crypto Exchanges
Recent Challenges for Bybit
The month of May has proven challenging for Bybit. On May 22, Zhou addressed rumors on X about the exchange being insolvent or hacked. These rumors stemmed from a misinterpreted chart that suggested funds were being drained from Bybit’s wallets. In response, Bybit published its proof of reserves and shared data from a Nansen dashboard, demonstrating that it holds more than 100% of the assets required to cover all deposits.
Additionally, on May 16, Bybit faced regulatory challenges in France. The Autorité des Marchés Financiers (AMF) reiterated that the exchange is blacklisted in the country, adding to the company’s regulatory hurdles.
