BNB Chain Sues Ex-Employee Over Alleged Memecoin Manipulation

BNB Chain is taking legal action against a former employee who allegedly retained unauthorized access to a seed phrase and used it to generate a new memecoin called ASTEROID.

The employee, whose identity has not been disclosed, reportedly generated four wallets that spent $10,000 to acquire 796.7 million tokens, representing nearly 80% of the token's supply.

Lookonchain estimates that the alleged operator made approximately $628,000 in profit from selling 718.8 million ASTEROID tokens for 1,103 BNB, valued at about $638,000.

BNB Chain claims it was not involved in creating, authorizing, promoting, or participating in the new token and is cooperating with relevant authorities to investigate the incident.