BNB Chain has announced it is taking legal action against a former employee who allegedly retained unauthorized access to a seed phrase and used it to trade a memecoin, generating an estimated $628,000 profit. According to BNB Chain, the wallet in question was created for a company video tutorial, but the former employee later generated a new private key from the retained seed phrase and used it to acquire and sell the memecoin, called Asteroid Shiba.
Incident Details
On-chain analytics account Lookonchain linked the launch to Asteroid Shiba, alleging that four newly created wallets spent about $10,000 to acquire 796.7 million tokens, equal to 79.67% of the stated one billion-token supply. The wallets later sold 718.8 million tokens for 1,103 BNB, valued at about $638,000.
Investigation and Aftermath
BNB Chain has not disclosed when the employee departed or how long the seed remained accessible, but it is working with relevant authorities to investigate the incident. The case raises questions about how tutorial wallets and recovery phrases were handled when employees left the company.
