Bybit Reshuffles Executives Following $26M Compensation for Botched Airdrop Amid Regulatory Challenges
Summary:
Following a botched airdrop of Notcoin (NOT) resulting in a $26 million compensation to users, cryptocurrency exchange Bybit underwent a restructure of its executive team. The airdrop delay affected 320,000 users, who were given their tokens late due to system maintenance and high transaction volumes. Amid regulatory challenges in France and dispelling rumors about its solvency, the company remains optimistic by showing proof of adequate reserves to cover all deposits.
Following a mishap with an airdrop that required Bybit to distribute $26 million to users as compensation, a reshuffle in the cryptocurrency exchange's executive lineup has surfaced since May 31. A representative for Bybit shared with Cointelegraph that periodic business structural adjustments are the norm, where employees are reassigned as per their capabilities for optimum performance. This caused a few shifts in leadership positions, however, none of the impacted individuals have exited the organization, but have shifted to alternate internal roles.
The repositions were in response to an unsuccessful airdrop of Notcoin (NOT), a Telegram Mini App with an integrated play-to-earn game and token. Bybit clarified that its system maintenance and high volume of transactions were the reasons behind the delay of the airdrop. They distributed the airdrops to accounts that operated during system maintenance which then required more time to reconcile all balances accurately.
Late token distributions resulted in a declined trade value for those who received their tokens afterward. The exchange stated that this mix-up affected approximately 320,000 users. To solve this situation, Bybit announced on May 17 a $26 million compensation strategy. According to CEO Ben Zhou, emails regarding this processing would be sent out in the coming days. He apologized for the inconvenience and assured this would not repeat.
This comes amid a difficult period for the exchange. Previously on May 22, CEO Zhou had to refute assumptions that Bybit was either financially incapable or subjected to a hack, which were mostly based on a misunderstood chart hinting at funds exit from the exchange’s wallets. The company demonstrated its reserves evidence and Nansen dashboard data to prove it possesses over 100% of all necessary assets to cover all deposits.
Earlier this month, on May 16, Bybit grappled with regulatory hurdles in France. The Autorité des Marchés Financiers (AMF) issued another warning that Bybit was on the country's blacklist. Magazine: The listing ordeal of Bybit’s Notcoin, along with a China firm’s profits rising twelve times post its crypto purchase: Asia Express.
Published At
6/1/2024 12:24:53 AM
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