BNB Chain Pursues Legal Action Against Former Employee Over Unauthorized Memecoin Launch
In Brief
BNB Chain pursues legal action against a former employee who allegedly exploited a tutorial wallet to launch a memecoin, netting $628,000 in profit.
BNB Chain is pursuing legal action against a former employee who allegedly retained unauthorized access to a company wallet and used it to launch a memecoin, generating substantial profits. The blockchain ecosystem disclosed in an official statement on Saturday that the wallet address was originally created for an internal video tutorial demonstrating how to generate tokens.
According to BNB Chain, the former staff member kept the wallet’s seed phrase after departing the company and later used it to derive a new private key, enabling independent control of the address.
Blockchain analytics platform Lookonchain subsequently linked the wallet to a meme token called Asteroid Shiba (ASTEROID). The platform alleged that the former employee deployed the token and utilized four newly created wallets to acquire 796.7 million ASTEROID tokens—representing 79.67% of the total supply—for approximately $1,000. Lookonchain further claimed that these wallets later sold 718.8 million tokens for 1,103 BNB, valued at roughly $638,000, yielding an estimated profit of $628,000.
BNB Chain emphasized in its statement that it “did not create, authorize, promote or participate in the creation of this token and has no control over the token or wallet address,” explicitly distancing itself from the asset. Binance founder Changpeng Zhao amplified the statement on social media, characterizing the former employee as “basically a scammer” while advising users to remain vigilant.
Legal Action Pending as Incident Exposes Critical Gaps in Employee Offboarding and Credential Security
BNB Chain stated it is cooperating with relevant law enforcement authorities regarding the incident, though it declined to identify the individual, jurisdiction, specific agency, or court involved. The organization has not disclosed a complaint number, venue for legal action, or whether it is seeking asset recovery, damages, or criminal charges.
The absence of formal documentation leaves the company’s public statement and on-chain analysis as the primary evidentiary records, with the employee attribution remaining an allegation rather than a judicial finding.
The incident raises operational security concerns regarding the handling of tutorial wallets and recovery phrases during personnel transitions. Because a retained seed phrase can regenerate private keys even after initial copies are removed from devices, the case underscores vulnerabilities in internal credential management procedures. BNB Chain has not revealed when the employee departed, how long the seed phrase remained accessible, or whether other tutorial wallets are currently under review.
The situation also evokes a separate 2025 report in which Binance suspended an employee over alleged token front-running; BNB Chain has not clarified whether these incidents involve the same individual. Recovery of the proceeds would likely depend on tracing the 1,103 BNB to identifiable exchange accounts or services responsive to lawful requests, though no freeze or restitution has been announced.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
