OpenClaw Imposes Crypto Discussion Ban After $16M Fake Token Incident

OpenClaw, a rapidly growing open-source AI agent framework, has implemented a strict ban on cryptocurrency discussions on its Discord channel. The decision comes after a security incident in January, which exposed vulnerabilities in the project's infrastructure and put users at risk.

The incident began when scammers hijacked OpenClaw's accounts during a rebranding process. They used these accounts to launch a fake token called $CLAWD on the Solana blockchain, which briefly reached a market capitalization of $16 million before crashing over 90%. The episode not only caused financial losses for late buyers but also subjected the project's lead developer, Peter Steinberger, to weeks of harassment.

In the aftermath of the incident, researchers discovered hundreds of OpenClaw instances that were publicly accessible without authentication. Additionally, a malicious script was identified on the project's official repository, which had been downloaded nearly 7,000 times before being flagged.