BNB Chain has filed a lawsuit against a former employee who allegedly used a training video wallet to launch an unauthorized meme token, generating approximately $628,000 in profits. According to reports from CoinDesk, the company claims the former employee kept the wallet's seed phrase after leaving the company and subsequently used it to create a new private key, allowing them to control the wallet address. BNB Chain has confirmed that lawyers and police are involved in the case, though the company has not disclosed the identity of the employee or the specific meme token involved. The network said it was cooperating with authorities but did not identify the individual, jurisdiction, agency or court.
On-chain analytics account Lookonchain linked the controversy to a token called ASTEROID Shiba (ASTEROID). The investigation revealed that four newly created wallets spent approximately $10,000 to acquire 796.7 million tokens, representing 79.67% of the stated one billion-token supply. According to Lookonchain's analysis, the wallets later sold 718.8 million ASTEROID for 1,103 BNB, valued at about $638,000, producing an estimated $628,000 profit for the alleged operator. The wallets and any destinations receiving the 1,103 BNB may provide a trail for investigators, though recovery would depend on whether funds reach identifiable exchange accounts. As reported by AMBCrypto, the alleged insider access became clearer when examining the token's early distribution, with the former BNB Chain employee using four linked wallets to acquire the majority of the token supply for roughly $10,000.
BNB Chain has moved quickly to distance itself from the unauthorized meme token. According to the company's statement reported by CoinDesk, BNB Chain stated: "We are now aware that the same address is being used independently in connection with a new meme token. BNB Chain did not create, authorize, promote or participate in the creation of this token and has no control over the token or wallet address." The company emphasized that it does not own the token, does not back it, and cannot control the wallet used for the meme token launch. The organization described the address's later use as independent activity and said the token was not affiliated with or endorsed by the ecosystem. On X, BNB Chain denied creating, approving, or promoting ASTEROID and has started legal action alongside authorities.
The case highlights significant security risks in cryptocurrency self-custody practices and raises questions about how tutorial wallets and recovery phrases were handled when employees left. As reported by CoinDesk, Binance founder and former CEO CZ commented that "the guy is basically a scammer," referencing the broader issue of employees retaining access to company wallets after departure. BNB Chain's stock traded lower on Saturday, sitting at ₹4,750.62 ($579.62), down 2% in a day, with a market value near ₹6,38,000 crore ($77.2 billion). The alleged insider access also highlights how weak offboarding procedures can expose crypto projects to long-term security and governance risks. According to AMBCrypto, the concentrated ownership pattern placed most of the token supply under a single participant during the earliest trading phase, with the same wallets later selling 718.8 million ASTEROID for 1,103 BNB, worth about $638,000, producing an estimated $628,000 profit.
