BNB Chain sues ex-employee over $628K memecoin trade
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 with a new memecoin.
- BNB Chain says a former employee retained unauthorized seed phrase access after leaving the company.
- Four wallets allegedly bought 79.67% of ASTEROID's supply for $10,000 before later selling most tokens.
- Lookonchain estimates 1,103 BNB in sales produced approximately $628,000 in profit for the alleged operator.
The network said it was cooperating with authorities but did not identify the individual, jurisdiction, agency or court.
The wallet was created for a company video tutorial showing how to generate a token, according to BNB Chain's statement. The organization said the former employee later generated a new private key from the retained seed phrase. It denied creating, authorizing, promoting or participating in the new token.
BNB Chain described the address's later use as independent activity and said the token was not affiliated with or endorsed by the ecosystem. Its announcement did not provide a complaint, case number, named regulator or details about where the planned legal action would be brought.
Changpeng "CZ" Zhao reposted the statement and called the former employee "basically a scammer," while telling users to "Stay SAFU." His description is an allegation, not a court finding. BNB Chain did not disclose whether it is seeking asset recovery, damages or criminal charges.
On-chain analytics account Lookonchain linked the launch to a token called Asteroid Shiba, or ASTEROID. It 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.
Lookonchain said the wallets later sold 718.8 million ASTEROID for 1,103 BNB, valued at about $638,000, producing an estimated $628,000 profit. It published the four addresses for review on BscScan. However, blockchain records show wallet activity, not the legal identity controlling it. The employee attribution therefore remains an allegation supported by BNB Chain's statement and Lookonchain's analysis.
A seed can generate the private keys used within a deterministic wallet. Removing one private key from a device does not invalidate a retained copy of the underlying seed, which can be used to derive wallet keys again. The case raises questions about how tutorial wallets and recovery phrases were handled when employees left.
BNB Chain has not disclosed when the employee departed, how long the seed remained accessible or when it discovered the retained access. It also has not said whether other tutorial wallets are under review.
BNB Chain said it is working with relevant authorities, but its statement did not name an agency that had opened an investigation. A formal complaint or enforcement notice would clarify the legal claims, venue and requested remedies. Until then, the company statement and on-chain analysis remain the main public records.
The wallets and any destinations receiving the 1,103 BNB may provide a trail for investigators. Recovery would depend on whether funds reach identifiable exchange accounts or services able to respond to lawful requests. BNB Chain has not announced a freeze, recovery or repayment.
No token-price reaction is included because multiple assets use the ASTEROID name and BNB Chain did not publish a contract address. Using market data for another token could misstate the event. The next verified development would be a company update, regulator notice or public court filing.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

A Practical Guide to FOMO: How to Find People and Coins in Social Trading?

Cybersecurity Events: USB Worm Targets Crypto Wallets, Apple Closes Hole in Beats Studio Buds

SDE ep. 41: Bitcoin Self-Custody After ColdCard

Dan Koe: The Counterintuitive Truth That You Don't Need to Remember Everything You've Read

Popular Interaction Collection | Axis Robotics 'Zero-Roll' Task; Orbinum Testnet Experience (July 30)

I tested with $10,000: zero wear and tear, annualized 8%, and can earn points (with complete tutorial + screenshots)

Crypto Regulation News Update 2026: CLARITY Act, SEC-CFTC Framework, and 1099-DA Cost Basis Reporting Goes Live
Latest crypto regulation news April 2026: CLARITY Act stalled over stablecoin yield, Senate window closing. IRS Form 1099-DA cost basis reporting now mandatory. SEC-CFTC taxonomy guide. Actionable compliance insights.

Crypto Tax Deadline 2026: How to Generate 2026 Crypto Tax Reports (WEEX & KoinX Fast Tutorial)
Still filing crypto taxes close to the 2026 deadline? Follow this step-by-step WEEX Tax API + KoinX workflow to export data and generate an accurate crypto tax report quickly.

The Cryptographic Past of the Middle East

WEEX-OTC trading launches OSL payment channel
WEEX has officially launched our Quick Buy feature and added OSL Pay channel to help make fiat deposits more convenient and accessible.

When Bitcoin's Unsolved Mystery Meets a New Meme

DEEPCOIN Completes System Penetration Testing with HackenProof to Strengthen Asset Security

In the 17th Year of the Crypto Era, Where is Solana's Path to Survival?

Oil Crisis: 5 Reasons Why the Surge Won't Stop

SEC Reveals Progress on Key Measures to Drive Quality in Thailand's Investment Market

Real Review of World.xyz: Millisecond Trading and Betting Against Market Makers

Trump's Poll Numbers Decline, Bond Market Out of Control: Is Walsh's Independent Space Opening Up?

ESMA Warns of Growing Links Between Crypto and Finance

How to Calculate Bitcoin Profit for Beginners Easily - Fintech World
![[Full Text] Solana Foundation: "Korean STOs Should Start Within Regulations and Expand Globally"](/public-static/10_5acc261b9b.png?format=avif)
[Full Text] Solana Foundation: "Korean STOs Should Start Within Regulations and Expand Globally"

Can Bitcoin Be Bought with Rp50,000? Here's How - Fintech World

Bab el-Mandeb: Oil, Bitcoin, or... what are the consequences for the economy?

Anthropic: The Report That Implicates Claude, Between Missiles, Espionage in Mali, and Chinese Pillaging

Financial Services Agency Reports 1,961 Cases of Fraudulent Investment Solicitation from April to June, Over 80% Resulted in Losses

724 Eggs Cracked, 11,348 Traders Joined: WEEX TradFi Lucky Egg Campaign Hits 10M+ USDT in Trading Volume

JPMorgan Bullish on Meta: Muse, Model API, and Subscriptions Support $820 Target Price

Pump.fun Analysis: Is It Severely Undervalued, and What Should Its Target Price Be?

Bitget Wallet joins BCCC to take part in Japan’s self custody debate

Blockstream Refuses Ransom to Liquid Attackers; 4,000 Bitcoins Stolen, Over 80% Already Returned








