SKN | BNB Chain Takes Legal Action After Former Employee Allegedly Launches Unauthorized Memecoin

Key Points

• BNB Chain is pursuing legal action after a former employee allegedly used unauthorized access to a company wallet to launch a memecoin.
• The wallet was originally created for an educational tutorial and was not intended for commercial token issuance.
• Blockchain analytics firm Lookonchain alleged the former employee accumulated nearly 80% of the token supply before selling most of the holdings for approximately 638,000 worth of BNB.
• BNB Chain said it neither authorized nor endorsed the token and has no control over the associated wallet or project.

BNB Chain has announced that it is taking legal action after a former employee allegedly used unauthorized access to a company-controlled wallet to launch a memecoin without approval.

In a statement posted on X, BNB Chain explained that the wallet had originally been created solely for an instructional video demonstrating how developers could issue tokens on the network.

According to the company, the former employee retained access to the wallet’s recovery seed phrase after leaving the organization and later used the wallet to deploy a new cryptocurrency.

BNB Chain did not identify the individual involved but emphasized that the token was created without the company’s knowledge or authorization.

Tutorial Wallet Allegedly Used to Create Memecoin

The blockchain ecosystem stated that the wallet had been intended exclusively for educational purposes and was never authorized for launching commercial or public cryptocurrency projects.

BNB Chain stressed that it had no involvement in the creation, promotion or management of the token and does not control either the wallet or the associated project.

The company said it is treating the incident as an unauthorized use of company resources and has initiated legal proceedings.

Lookonchain Details Alleged Trading Activity

Following the announcement, blockchain analytics platform Lookonchain published its own analysis of the transactions.

According to Lookonchain, the former employee allegedly created a memecoin called Asteroid Shiba (ASTEROID) and used four newly generated wallets to acquire approximately 796.7 million ASTEROID tokens, representing 79.67% of the token’s total supply.

The analytics firm further alleged that 718.8 million tokens were later sold for approximately 1,103 BNB, valued at roughly $638,000 at the time of the transactions.

The allegations have not been independently verified, and BNB Chain’s investigation remains ongoing.

CZ Responds to the Incident

Binance founder and former CEO Changpeng “CZ” Zhao shared BNB Chain’s statement on social media, expressing support for the company’s response.

In his post, Zhao described the former employee as “basically a scammer” and reminded users to “Stay SAFU,” a phrase commonly used within the Binance ecosystem to encourage strong security practices.

His comments further reinforced BNB Chain’s position that the token was not affiliated with or endorsed by the blockchain ecosystem.

Security Remains a Priority

The incident highlights the importance of secure management of wallet credentials and access controls, particularly for organizations operating within the cryptocurrency industry.

Recovery seed phrases provide complete control over blockchain wallets, making strict operational security and timely revocation of employee access essential to protecting digital assets and maintaining user trust.

BNB Chain has not disclosed additional details regarding the legal proceedings or whether any funds have been recovered.

Outlook

The alleged unauthorized memecoin launch underscores the operational risks associated with digital asset management and the importance of robust internal security controls. As blockchain ecosystems continue to grow, companies are placing greater emphasis on governance, access management and legal enforcement to protect their brands and maintain confidence among developers and users.