BNB Chain, CZ Denounce Ex-Employee's Rogue Memecoin Launch

Tutorial Wallet Turned Rogue

BNB Chain is pursuing legal action against a former employee accused of using unauthorized wallet access to independently launch a memecoin. The wallet was originally created for a video tutorial explaining how to launch tokens on BNB Chain.The individual allegedly retained the wallet's seed phrase after leaving the company, allowing them to regain control of the creator address and use it to launch a new token.

Blockchain analytics platform Lookonchain alleged that the former employee deployed a meme token called Asteroid Shiba (ASTEROID) and used four newly created wallets to buy 796.7 million tokens, representing 79.67% of the total supply.Those wallets later sold 718.8 million tokens for 1,103 $BNB, worth about $638,000 at the time of the transaction.

The token also drew objections from an earlier project using the Asteroid Shiba name, which denied any involvement and said the newer token copied its identity.

BNB Chain and Changpeng Zhao Distance Themselves

BNB Chain said the token was not created, authorized, promoted, or supported by the company in any form.The network said it is pursuing legal proceedings against the former employee and is cooperating with relevant government authorities. The protocol urged users not to associate the token with the project and to rely only on its verified communication channels for official information.

Changpeng "CZ" Zhao called the former employee "basically a scammer" and urged users to "Stay SAFU." The remarks were personal allegations, not a court finding.

The incident highlights a broader operational risk in crypto organizations. In this case, the failure to revoke access to the seed phrase after the employee's departure created the opening that was later exploited. BNB Chain has not named the former employee, court, agency, or exact legal jurisdiction.

Sources:The Block: BNB Chain pursuing legal action against former employee over memecoin launched from tutorial walletCoinTelegraph via TradingView: BNB Chain pursues legal action after ex-employee's memecoin launchBlockonomi: BNB Chain pursues legal action against ex-employee over ASTEROID memecoin