BNB Chain is preparing legal action against a former employee accused of launching the ASTEROID meme token by reusing a wallet seed phrase initially created for a company educational tutorial. The blockchain network stated that the individual kept unauthorized access to the wallet’s recovery phrase after leaving the organization, allowing them to maintain control and generate new access credentials.
Legal steps over reused wallet access
BNB Chain clarified that it did not create, promote, or approve the ASTEROID token and reiterated it held no connection to the wallet activities surrounding its launch. The network emphasized its cooperation with authorities as it prepares legal measures, but did not identify the former staff member or specify where proceedings would take place. The organization also did not confirm if the case would be handled under civil or criminal law.
Changpeng Zhao, Binance founder, echoed the network’s warning on social media and advised users to take additional precautions. The allegations have not yet progressed to a court case.
“A wallet address was previously created by a former employee, which they then used to generate a token, as part of a video tutorial. That individual is no longer with the company as part of this incident. The individual retained unauthorized access to the associated seed phrase,” wrote BNB Chain on X.
BNB Chain, developed by Binance, is a leading layer-1 blockchain known for its role in decentralized finance (DeFi) and token deployment.
Lookonchain, an on-chain analytics platform, revealed that four wallets created just before the disputed token sale used approximately $10,000 to purchase 796.7 million ASTEROID tokens, accounting for 79.67% of the entire token supply. These wallets subsequently sold 718.8 million tokens for 1,103 BNB, valued at around $638,000.
Lookonchain estimated that the trades generated $628,000 in trading profit, but the identities behind the wallets remain unverified. The Block stated it could not confirm whether the wallets belonged to the former employee, highlighting the challenge of linking blockchain activity to individuals.
| Metric | ASTEROID Token |
|---|---|
| Total tokens bought by the four wallets | 796.7 million |
| Share of total supply | 79.67% |
| Total tokens sold | 718.8 million |
| BNB value received | 1,103 BNB (about $638,000) |
| Estimated trading profit | $628,000 |
Tutorial wallet origins and repeat controversy
The address at the center of the controversy had previously been used in a BNB Chain tutorial in February 2025 to demonstrate token creation. The token, TST, was highlighted in this lesson using the Four.Meme deployment tool and unexpectedly attracted speculation, pushing its market capitalization above $50 million. Zhao stated at the time that TST was not an official network asset, and BNB Chain later removed the educational content. The same wallet address reportedly retained a minor holding of TST.
The latest incident raised complaints from another team operating under the Asteroid Shiba name, which denied involvement and accused the new ASTEROID token of copying its identity.
Mini dictionary: Seed phrase – A unique sequence of words used to recover and restore access to a cryptocurrency wallet. If a seed phrase is retained, a former user can regain control of the wallet even after the private key is deleted, highlighting the importance of full security measures during employee offboarding.
Ongoing investigation and unresolved issues
The core issue centers on the difference between deleting a private key and securing the corresponding seed phrase. While private key files can be erased locally, a saved seed phrase can restore wallet access at any time. This reality complicates employee separation processes in blockchain organizations, where demonstration wallets created for educational purposes may hold ongoing risk if not properly decommissioned.
Currently, investigators have not publicly identified the individual responsible nor provided evidence directly linking the wallet to the former BNB Chain employee. Remaining questions include legal jurisdiction, chain of custody of the wallet, and the level of evidence required to distinguish wallet ownership based solely on blockchain records.
Until legal filings or regulatory action surface, the matter remains a dispute of claims rather than an established finding. In the meantime, BNB Chain has emphasized the need for caution around reused wallet addresses and advised its community to avoid trading tokens with disputed origins.
