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BNB Chain seeks legal action over alleged unauthorized memecoin launch

BNB Chain said a tutorial wallet’s seed phrase was retained after an ex-employee left, and blockchain analytics alleged the token was bought and sold at scale using new wallets.

Reported · Written up by our desk · Market Structure

BNB Chain said it is pursuing legal action after a former employee allegedly used unauthorized access to a company tutorial wallet to launch a memecoin that the network says it did not authorize or endorse.

According to the BNB Chain, the wallet was originally created for a video tutorial on launching tokens on BNB Chain, but the former employee allegedly kept access to the wallet’s seed phrase after leaving and later used the address to create a new token.

Blockchain analytics firm Lookonchain alleged the former employee deployed a meme token called Asteroid Shiba, and used four newly created wallets to buy 796.7 million tokens, or 79.67% of the total supply. Lookonchain further alleged the wallets later sold 718.8 million tokens for 1,103 BNB, valued at about $638,000 at the time of the transaction.

BNB Chain said it did not create, authorize, promote, or participate in the token’s creation, and that it has no control over the token or the wallet address.

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