Full story
BNB Chain sues ex-employee
BNB Chain said on Aug. 1 that it was pursuing legal action against a former employee who allegedly retained unauthorized access to a seed phrase and later used the associated wallet address to issue a new memecoin.
“BNB Chain said on Aug. 1 that it was pursuing legal action”
BNB Chain said the wallet address used for the token was originally created for a video tutorial while the employee was still with the company, and that after being dismissed the person retained unauthorized access to the seed phrase, used it to generate a new private key, and then used the address to launch a new token.
Lookonchain alleged that four newly created wallets spent about $10,000 to acquire 796.7 million tokens, equal to 79.67% of the stated one billion-token supply, before later selling 718.8 million ASTEROID for 1,103 BNB.
BNB Chain said it was cooperating with authorities but did not identify the individual, jurisdiction, agency or court, and the announcement did not provide a complaint, case number, named regulator or details about where the planned legal action would be brought.
CZ calls it a scam
BNB Chain stressed that it has no connection to the asset, saying, “We are now aware that the same address is being used independently in connection with a new meme token.”
In the same statement, BNB Chain added, “BNB Chain did not create, authorise, promote or participate in the creation of this token and has no control over the token or wallet address.”
Binance founder and former CEO Changpeng “CZ” Zhao reposted the statement and called the former employee “basically a scammer,” while telling users to “Stay SAFU.”
Cointelegraph reported that BNB Chain said the wallet was created for a video tutorial explaining how to launch tokens on BNB Chain, and that the former employee retained unauthorized access to the wallet’s seed phrase after leaving the company.
Funds and security questions
BNB Chain’s public messaging centered on distancing the ecosystem from ASTEROID, while Lookonchain’s on-chain analysis described a sequence in which the wallets bought 796.7 million ASTEROID and later sold 718.8 million for 1,103 BNB.
“seize nearly 80% of its supply, and walk away with about $638,000”
The Currency analytics said the accusation involved using a company-owned wallet to quietly launch a memecoin, seize nearly 80% of its supply, and walk away with about $638,000, while noting that BNB Chain had not revealed whether it was seeking to recover the 1,103 BNB.
Bitget reported that BNB Chain said the altcoin ASTEROID was not created, authorized, or promoted by the company and that it does not control the token or its associated wallet address, adding that BNB Chain announced it has initiated legal proceedings and is cooperating with relevant public authorities.
Across the coverage, the next steps described were legal proceedings and wallet tracing, with BNB Chain saying it was working with relevant authorities but not naming an agency that had opened an investigation.
