Crypto exchange Bybit is undergoing a period of internal restructuring following a series of high-profile incidents in May 2024. The most recent development involves a leadership shakeup, with several executives reportedly taking on new positions within the company. This comes after a botched airdrop of Notcoin (NOT), a play-to-earn game token, resulted in Bybit having to compensate users to the tune of $26 million.
The airdrop fiasco stemmed from a delay in token distribution due to system maintenance and high transaction volume. This delay caused the trading price of NOT to fluctuate significantly, leaving users who received their tokens later at a disadvantage. Bybit acknowledged the issue and announced the $26 million compensation plan to appease the affected 320,000 users.
Bybit’s CEO, Ben Zhou, took responsibility for the incident, expressing regret and promising a thorough internal review to prevent similar occurrences in the future. However, this wasn’t the only challenge Bybit faced in May.
Earlier in the month, rumors swirled on social media platforms like X that Bybit was insolvent or had been hacked. These rumors stemmed from a misinterpreted chart that allegedly showed a drain on the exchange’s wallets. Bybit swiftly addressed these concerns by providing proof of reserves and data demonstrating it held sufficient assets to cover all user deposits.
Adding to Bybit’s woes, the French financial regulator, Autorité des Marchés Financiers (AMF), reiterated a previous warning blacklisting the exchange in France on May 16th.
Also Read:Bybit Denies Insolvency Rumors: Memes Spark FUD, But Proof of Reserves Calms Fears
Bybit’s leadership shakeup suggests the company is taking a proactive approach to addressing these recent issues. Whether these internal changes will be enough to restore confidence and navigate the ongoing regulatory hurdles remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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