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”:
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 “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:
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 “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. 
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/ea3ac362-7f5a-4235-9f9f-9f968fa4fd6a.png">
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 Source: Ben Zhou
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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

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