BNB Chain is taking legal action after a former employee allegedly launched the ASTEROID memecoin using unauthorized wallet access and earned about $628K.
BNB Chain has announced legal action after a former employee allegedly launched the ASTEROID memecoin using unauthorized access to a wallet. According to the blockchain network, the wallet was only designed for an educational video tutorial. However, the former employee reportedly kept access to the wallet’s seed phrase after leaving the company. Moreover, BNB Chain also stated that it is cooperating with the relevant authorities in the investigation.
BNB Chain Legal Action Targets Unauthorized ASTEROID Memecoin
BNB Chain stated in a post on X that the wallet was originally developed to showcase how tokens can be launched on the BNB Chain. The company stated that the wallet was never designed for commercial use or for the creation of public tokens.
A wallet address was previously created by a former employee, which they then used to generate a token, as part of a video tutorial. That individual is no longer with the company as part of this incident.
The individual retained unauthorised access to the associated seed phrase…
— BNB Chain (@BNBCHAIN) August 1, 2026
BNB Chain says the ex-employee took the wallet’s seed phrase when he left the company. Later, the person took advantage of that access to create a new private key and start the ASTEROID memecoin without the company’s permission or knowledge.
Read more: The BNB Chain Fermi Hard Fork: A Big Leap for Faster Transactions – Ledger Tribune
BNB Chain emphasized that BNB Chain is not responsible for the creation, authorization, promotion, or support of the ASTEROID token. It also stated that it cannot control the token and the wallet that was used in the launch. So, the company urged users to not view the token as an official BNB Chain project.
The blockchain network also stated that it is taking legal action against the former employee. It also said it is working with the relevant authorities during the investigation.
Lookonchain Reveals Former Employee’s ASTEROID Trading Activity
Blockchain analytics platform Lookonchain provided more on-chain data on the incident. Its analysis shows that the former employee used the ASTEROID token and then purchased 796.7 million ASTEROID tokens via four newly created wallets.
The purchases made accounted for 79.67% of the total token supply. Shortly after deployment, Lookonchain estimated that the wallets cost approximately $10,000 to purchase the tokens.
Later, the same wallets reportedly sold 718.8 million ASTEROID tokens for 1,103 BNB, which is valued at around $638,000 at the time of the transactions. Lookonchain estimated the profit to be approximately $628,000 based on the blockchain data.
The on-chain activity soon garnered attention in the crypto community. BNB Chain, however, stated that the token launch and trading was done independently and had no relation with the company.
ASTEROID Memecoin Incident Raises Wallet Security Concerns
The incident has also raised awareness about the security of wallets and the management of seed phrases. Seed phrases are used to gain full access to cryptocurrency wallets. Therefore, anyone who keeps unauthorized access can potentially control the wallet even after leaving an organization.
BNB Chain said that the wallet in question was simply for a tutorial video. However, the company said the former employee kept access to the seed phrase after departing and later used it to generate a new private key.
BNB Chain stated that it will remain cooperating with the authorities as the legal proceedings continue. The company hasn’t said what more it will do. The case reminds organizations to protect wallet credentials and remove access when employees leave. It also shows how public blockchain data helps track transactions and identify suspicious activity.
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