A former BNB Chain employee launched a new token named $ASTEROID and reaped a $628,000 profit. The individual used four fresh wallets to acquire 796.7 million $ASTEROID, representing 79.67% of the total supply, with an initial capital outlay of just $10,000 to seize the vast majority of the circulating tokens.
On-chain analysis from lookonchain revealed the details of the cash-out transactions. The former employee sold 718.8 million $ASTEROID and swapped them for 1,103 BNB. This sale generated roughly $638,000 in liquidity, securing a massive profit margin shortly after launching the token.
More Than Just Insider Trading
This scandal fundamentally differs from routine insider trading cases seen in the crypto industry. Rather than exploiting confidential information regarding new project launches, the perpetrator directly leveraged the official educational infrastructure of their former employer. The wallet used to execute the $ASTEROID trading scheme was BNB Chain’s official tutorial wallet.
Using the company’s official tutorial wallet lent a false sense of legitimacy to the token’s network activity. By controlling nearly 80% of the supply from the very first second trading began, the individual held total control over market price action. They locked up supply, manufactured an illusion of demand, and waited for the right moment to dump their position on the open market. In liquidating hundreds of millions of tokens, they converted their self-minted coins into highly liquid BNB assets.
Legal Action Awaits the Perpetrator
BNB Chain did not sit idly by after on-chain transaction trails implicated its internal infrastructure. The company confirmed it is pursuing legal action against the former employee. The incident highlights an internal security vulnerability, where a facility initially built purely for public technical guidance was repurposed into an exploit tool for liquidity extraction.
BNB Chain’s legal measures also underscore that trails on an open blockchain cannot be concealed, despite the perpetrator’s attempt to disperse tracks across four new wallets. On-chain transactions remain a robust record to bring corporate abuse offenders to real-world justice. A tutorial resource designed to educate new users has now become the central focus of an internal investigation.
Reported by @lookonchain on X.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
