BNB Chain Sues Former Employee Over Alleged $628,000 Meme Token Scheme

BNB Chain is suing a former employee for allegedly using a cryptographic seed phrase to launch a meme token called Asteroid Shiba ($ASTEROID) and generating an estimated $628,000 in profit.

The former employee had retained the seed phrase after leaving BNB Chain, which gave them full control over a wallet created for an educational video tutorial. The wallet was used to deploy ASTEROID, and the employee allegedly purchased 796.7 million tokens representing 79.67% of the token's total supply for approximately $10,000.

The token's connection to BNB Chain drove rapid retail buying interest, with its market cap reaching $10 million in four hours. The employees then sold 718.8 million tokens for around $638,000, generating an estimated profit of about $628,000.