BNB Chain holds former employees accountable over US$638,000 ASTEROID token exchange dispute

BNB Chain takes legal action over former employee allegedly using teaching wallet seed phrases to issue tokens

BNB Chain is preparing to take legal action against a former employee accused of issuing ASTEROID meme tokens by reusing mnemonic words created in the company's teaching curriculum. The blockchain network said the employee still illegally held the wallet's recovery phrase after leaving the company, allowing him to maintain control and generate new access credentials.

Legal steps triggered by reuse of wallet access rights

BNB Chain clarified that it did not create, promote or approve the ASTEROID token and reiterated that there was no connection to wallet activities related to the token issuance. The network stressed that it was cooperating with relevant authorities in the process of preparing legal measures, but did not disclose the identity of the former employee or say where the lawsuit would take place. The organization also did not confirm whether the case would be handled under civil or criminal law.

Binance founder Zhao Changpeng echoed the network's warnings on social media and advised users to take additional precautions. Currently, these charges have not yet entered the court stage.

BNB Chain posted on the X platform: "This wallet address was previously created by a former employee and used to generate tokens as part of a video tutorial. The employee no longer cooperates with the company due to this incident. The employee illegally retained the relevant mnemonic words."

BNB Chain, developed by Binance, is a leading Layer 1 blockchain known for its role in decentralized finance and token deployment.

On-chain analysis platform Lookonchain revealed that the four wallets created before the controversial token launch spent approximately US$10,000 to purchase 796.7 million ASTEROID tokens, accounting for 79.67% of the total token supply. Subsequently, the wallets sold 718.8 million tokens for 1,103 BNB (approximately US$638,000).

Lookonchain estimates that the transactions generated trading profits of $628,000, but the identities behind the wallets have not been confirmed. The Block said it could not confirm whether the wallets belonged to the former employee, highlighting the difficulty of associating blockchain activities with individuals.

ASTEROID token related data

The total number of tokens purchased by the four wallets: 796.7 million; the proportion of total supply: 79.67%; the total number of tokens sold: 718.8 million; the value of BNB received: 1,103 BNB (approximately US$638,000); estimated transaction profit: US$628,000.

Tutorial The origin of wallets and a repeat of the controversy

The core address of this controversy was previously used to demonstrate token creation in a BNB Chain tutorial in February 2025. The tutorial uses the Four.Meme deployment tool to showcase the token TST, which accidentally triggered speculation and had a market value of more than $50 million at one point. Zhao Changpeng said at the time that TST was not an official network asset, and BNB Chain subsequently deleted the educational content. According to reports, a small amount of TST is still held in the same wallet address.

The latest incident sparked dissatisfaction from another team called AsteroidShiba, which denied involvement in the incident and accused the new ASTEROID token of copying its identity.

Mini Dictionary: Seed phrase-a unique sequence of words used to restore access to cryptocurrency wallets. If the seed phrase is retained, the former user can regain control of the wallet even if the private key is deleted, highlighting the importance of comprehensive security measures during employee departure.

Unanswered issues in ongoing investigations

The core issue is the difference between deleting private keys and protecting corresponding seed phrases. Although private key files can be deleted locally, saved seed phrases can restore wallet access at any time. This reality complicates the employee resignation process in blockchain organizations, as demonstration wallets created for educational purposes may continue to be at risk if not properly disposed of.

At present, investigators have not publicly confirmed the identity of the individuals involved, nor have they provided direct evidence to link the wallet to a former employee of BNB Chain. Outstanding issues include legal jurisdiction, the chain of custody of wallets, and the evidentiary standards needed to distinguish wallet ownership based solely on blockchain records.

The matter remains at a controversial stage rather than a determined conclusion until legal documents or regulatory actions are released. At the same time, BNB Chain emphasized the need to be cautious about reused wallet addresses and advised its community to avoid trading tokens whose origin is questionable.