Notcoin

Several executives from the crypto exchange Bybit had changed positions after a flawed airdrop resulted in over $26 million in compensation to users.&nbsp;
Reports of leadership changes in the exchange first <a href="https://t.me/wublockchainenglish/13213" target="_blank" rel="noopener nofollow">surfaced</a> on May 31. A Bybit spokesperson told Cointelegraph the company updates its business structure “regularly”:
<blockquote data-ct-non-breakable="true">
 “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.”
</blockquote>
The changes follow the botched airdrop of Notcoin (NOT), a play-to-earn game and token integrated as a Telegram Mini App. In a statement, Bybit <a href="https://announcements.bybit.com/en/article/latest-updates-and-compensation-regarding-not-coin-airdrop-incident-blt931f422554503e47/" target="_blank" rel="noopener nofollow">explained</a> that the airdrop was delayed due to system maintenance and an unusually high transaction volume:
<blockquote data-ct-non-breakable="true">
 “Airdrops were distributed to users whose transactions occurred during the scheduled system maintenance. Hence, it took longer to reconcile all balances and reflect them accurately.”
</blockquote>
The delayed distribution of tokens led to a lower trading price for those who received their tokens later. The balance issue affected 320,000 users, according to the exchange. In response to the incident, Bybit disclosed a $26 million compensation plan on May 17. 
“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 deep dive internally to make sure it never happens again,” <a href="https://x.com/benbybit/status/1791080850945392952" target="_blank" rel="noopener nofollow">wrote</a>&nbsp;Bybit’s CEO Ben Zhou. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/ea3ac362-7f5a-4235-9f9f-9f968fa4fd6a.png">
 <figcaption style="text-align: center;">
 Source: Ben Zhou
 </figcaption>
</figure>
The exchange is having a challenging month. On May 22, Zhou dispelled rumors on X that Bybit was insolvent or hacked. The rumors were largely based on a misinterpreted chart suggesting funds were being drained from the exchange’s wallets.
In response, Bybit shared its proof of reserves and data from a Nansen dashboard showing it holds more than 100% of all assets required to cover all deposits.
A few days before, on May 16, Bybit faced regulatory challenges in France. The Autorité des Marchés Financiers (AMF) <a href="https://cointelegraph.com/news/france-securities-regulator-bybit-warning">reiterated a warning</a> that the exchange is blacklisted in the country.
Magazine: <a href="https://cointelegraph.com/magazine/bybit-notcoin-listing-debacle-china-firm-profit-after-crypto-buy-asia-express/">Bybit’s Notcoin listing debacle, China firm’s profits up 12-fold after crypto buy: Asia Express</a>

Bybit restructures executive team following $26M airdrop fiasco

Cointelegraph

Other articles published on May 31, 2024

ARK Development Report - May 31, 2024

Shiba Inu’s Price Faces Sharp Swings

Ark Invest Sells Nearly $26M Worth Of Robinhood Shares

NFT Sales Fall By 54% This Month – Records The Lowest Trading Volume Since Oct 2023

Aptos Foundation Partners with Chainlink’s SCALE Program

DMM Bitcoin Suffers Major Security Breach, 48 Billion Yen Lost

Join our free newsletter for daily crypto updates!