The incident centers on a wallet address originally created for a company video tutorial. According to BNB Chain, the former staffer retained the seed phrase after leaving the organization, later using it to generate a new private key. This allowed the individual to launch the token ASTEROID and manipulate its liquidity. On-chain analysis by Lookonchain indicates that four wallets controlled by the suspect acquired nearly 80% of the total supply for $10,000, subsequently selling the majority of the tokens for 1,103 BNB.
In section Cryptocurrency
BNB Chain Pursues Ex-Employee Over $628,000 Memecoin Scheme
A former BNB Chain employee allegedly leveraged unauthorized access to a company-generated seed phrase to execute a lucrative memecoin pump-and-dump scheme. The network confirmed it is pursuing legal action after the individual reportedly used the credentials to harvest $628,000 in profits from a token launch.
BNB Chain has disavowed any affiliation with the project, labeling the activity as an independent, unauthorized exploit. While the company stated it is cooperating with authorities, it has yet to disclose a specific jurisdiction, court filing, or the identity of the individual involved. Former CEO Changpeng Zhao characterized the act as a scam, though no formal charges have been adjudicated. The case highlights significant security vulnerabilities regarding the management of tutorial-based recovery phrases and internal access controls following employee departures.
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