Bybit, a prominent cryptocurrency exchange, has undergone internal restructuring within its executive team following a botched airdrop incident that impacted over 320,000 users and necessitated a compensation payout exceeding $26 million.

Reports of changes within Bybit's leadership emerged on May 31, with a spokesperson confirming the reorganization, emphasizing the company's commitment to optimizing its business structure. According to the spokesperson, the reshuffle aims to ensure that individuals are placed in roles that align with their expertise and the company's evolving needs. Notably, the affected executives have transitioned to new internal positions rather than leaving the company altogether.

The restructuring comes in the aftermath of a flawed airdrop involving Notcoin (NOT), a token associated with a play-to-earn game integrated as a Telegram Mini App. Bybit attributed the delayed distribution of tokens to system maintenance and a surge in transaction volume, which led to challenges in reconciling balances accurately.

As a result of the delayed distribution, users who received their tokens later experienced a decline in trading prices, affecting a significant number of users. Bybit swiftly responded to the incident by announcing a comprehensive compensation plan amounting to $26 million on May 17. CEO Ben Zhou reassured affected users of the exchange's commitment to rectify the situation promptly.

However, Bybit has faced a series of challenges in recent weeks, further compounded by rumors circulating on social media platforms. Zhou refuted claims of insolvency or hacking, providing evidence of the exchange's financial health and transparency regarding its reserves. Additionally, regulatory hurdles emerged in France, where the exchange was flagged by the Autorité des Marchés Financiers (AMF), reiterating warnings against its operation within the country.

Despite these setbacks, Bybit remains focused on enhancing its operational resilience and addressing internal processes to prevent similar incidents in the future. The reorganization of its executive team underscores the exchange's commitment to accountability and effective governance amid ongoing market challenges and regulatory scrutiny.