BNB Chain is taking legal action against a former employee for allegedly retaining a tutorial wallet’s seed phrase and using it with a new memecoin. On-chain data shows that four wallets bought 79.67% of the token’s supply, reportedly generating approximately $628,000 in profit. BNB Chain stated it is cooperating with authorities but did not name the employee, court, agency, or jurisdiction. The network denied any involvement or endorsement of the token, which was identified as Asteroid Shiba (ASTEROID). No details on asset recovery or financial claims have been provided.
BNB Chain is pursuing legal action against a former employee accused of unauthorized wallet access. The individual allegedly retained a tutorial wallet’s seed phrase and later used the address with a new memecoin.
The August 1 statement said BNB Chain is cooperating with relevant authorities. However, it did not name the individual, agency, jurisdiction, or court.
The wallet had been created for a video showing how to generate a token. BNB Chain said the former employee later used the retained seed phrase to generate a new private key.
BNB Chain denied creating, approving, promoting, or participating in the new asset. The project was not affiliated with or endorsed by the network, it stated.
Changpeng “CZ” Zhao reposted BNB Chain’s statement. He described the former employee as “basically a scammer” and told users to “Stay SAFU.”
On-chain analytics account Lookonchain identified the memecoin as Asteroid Shiba (ASTEROID). It alleged that four newly created wallets spent about $10,000 on 796.7 million tokens.
According to Lookonchain, the wallets sold 718.8 million ASTEROID for 1,103 BNB, worth approximately $638,000. The trades generated profits amounting to approximately $628,000.
The analytics account posted the four wallet addresses on BscScan. No evidence has been presented by BNB Chain proving a specific individual controls those wallets.
BNB Chain didn’t mention when the employee resigned or how long the seed phrase was accessible. Legal action has been initiated, but no information was provided about asset recovery or financial damage claims.
