BNB Chain sues former employee over meme coin scam allegations
The ex-employee allegedly profited $600,000 by misusing company resources to create a token.
1The incident
BNB Chain accused a former employee of creating a meme coin called ASTEROID using company training materials. The employee allegedly maintained unauthorized access to a wallet's seed phrase created during their employment and used it to generate a new token. BNB Chain clarified they have no association with this token.
2Financial details
According to Lookonchain data, the ex-employee purchased 79.67% of ASTEROID's total supply (796.7 million tokens) for just $10,000. They later sold 718.8 million tokens for $638,000, making approximately $628,000 profit. These transactions strengthened allegations of misusing company resources for personal gain.
3Company response
BNB Chain emphasized they neither participated in nor endorsed the token's creation or sales. Former CEO CZ called the incident 'clear fraud.' The company announced legal action against the former employee to protect its reputation in the industry.
4Previous incidents
This isn't the first scandal involving Binance ecosystem employees. In 2025, a $5,000 annual limit was imposed on employee crypto investments. In 2024, an employee allegedly gained $113,600 in profits, while another was fired over corruption allegations.
5Technical aspects
The ex-employee maintained unauthorized access to a wallet's seed phrase originally created during a training video session. Using this access, they generated a new private key to launch ASTEROID. Nearly 80% of the tokens were initially held in wallets controlled by the employee.
6Legal proceedings
BNB Chain filed a lawsuit against the former employee for alleged abuse of authority and fraud. The company is pursuing legal action to prove the token's disassociation and protect its reputation. This case has reignited discussions about employee ethics standards in crypto.
7Industry impact
The incident highlights the importance of employee access controls in crypto projects. Experts call for stricter security measures in managing seed phrases and private keys. New regulations are expected regarding oversight of employees' personal trading activities industry-wide.
8Conclusions
The BNB Chain scandal exposes weaknesses in crypto companies' internal audit mechanisms. Projects need better control over employee technical access and stronger ethical business practices. Such incidents represent significant challenges in the industry's maturation process.