BNB Chain has stated that it has no connection to the memecoin called ASTEROID, which was created by a former employee. The company said that the individual created a new private key using a seed phrase that they had unauthorized access to and issued tokens from the same wallet address.
The story goes back to the previously launched TST token. According to BNB Chain, the former employee, while working at the company, created a new wallet address using the official test wallet to prepare a video tutorial, and launched the TST token through this address.
It was stated that the employee, who continued to have unauthorized access to the relevant seed phrase after leaving the company, used this information to create a new private key. The same address was found to have been used on August 1st on BNB Chain to distribute a new meme coin called ASTEROID.
Related News: How Did Bitcoin and Ethereum Perform in Past Augusts? Here Are the Key Statistics You Need to Know
It was reported that the market value of the ASTEROID token briefly rose to $10 million within the first four hours of its launch.
BNB Chain has clarified that the altcoin ASTEROID was not created, authorized, or promoted by the company. The company also stated that they do not control the token or its associated wallet address, and that the project is not supported by BNB Chain.
The statement read, “BNB Chain did not participate in the creation of this token, nor did it authorize or endorse it. We have no control over the token or wallet address.”
BNB Chain announced that it has initiated legal proceedings against the former employee and is cooperating with relevant public authorities regarding the matter.
*This is not investment advice.
Continue Reading: Watch Out for the Newly Emerged Memecoin: BNB Developers Announce They Will File a Lawsuit