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OpenClaw Bans All Crypto Talk on Discord After $16M Fake Token Chaos

Crab claw holding smartphone with BAN. OpenClaw Bans All Crypto Talk on Discord After $16M Fake Token Chaos

OpenClaw, the open-source AI agent framework with over 200,000 GitHub stars, has banned all discussions related to crypto from its Discord server. This includes any technical references that are neutral. The extreme policy was implemented due to a traumatic experience that OpenClaw’s founder, Peter Steinberger, experienced when he “nearly died” from crypto speculation.

OpenClaw Bans All Crypto Talk on Discord After $16M Fake Token Chaos: "Any mention of bitcoin will get you banned," warns founder scarred by scammer hijack.
Source: OpenClaw homepage.

Why OpenClaw Imposed the Iron Curtain on Crypto Talk

The impetus for OpenClaw’s ban on crypto talk originated in late January. At that time, OpenClaw underwent a comprehensive rebranding process to avoid trademark infringement after receiving a notice of violation from Anthropic regarding their name, Clawdbot. Within minutes of changing their name, someone took control of OpenClaw’s abandoned GitHub and X accounts to create and promote a fake Solana token named $CLAWD. Speculators jumped into this scam and drove the market cap for $CLAWD to as high as USD 16 million while Steinberger was still in the process of issuing a public statement to dissociate himself and OpenClaw from the fraud. 

After a few days, the token’s price dropped by 90%, and hundreds of angry investors/traders used the X platform to harass Steinberger, demanding he support the token. In response to these continued harassment efforts, Steinberger said, “Please stop pinging me, and stop harassing me,” and, “I will never do a coin.”

Security Nightmares Followed after Token Chaos

Many issues were revealed “thanks” to this incident, exposing the larger security problem. Blockchain security company SlowMist discovered hundreds of these OpenClaw instances exposed to the Internet without authentication, and a different researcher discovered 386 malicious “skills”, add-on scripts for OpenClaw agents, targeting crypto traders. 

Following the events, a combination of a speculative feeding frenzy and security shortfalls ultimately left the project developers in defensive mode, enforcing hard rules on their official channels to prevent scam attacks and spam.

Final Take

To this point, this could be a scar that won't heal. The experience with OpenClaw and the resulting crypto ban is a bitter teaching experience for developers. When scammers use your brand to pump and dump, the safest course of action you can take is to completely separate yourself from them. The toughest part is realising that even if you mention “bitcoin” as a technical timestamp, you will be placed in exile and cut off from that community.

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A Web3 Journalist at TimesCrypto with a knack for turning complex ideas into engaging stories. With a solid Tech background, Alan has led teams to create and refine impactful projects across industries, working in firms such as IBM, Cisco Systems, and Telecom. He’s passionate about Blockchain, Finance, Science, bringing a unique blend of technical expertise and creative flair to every piece he writes. When he’s not crafting content, you’ll find him diving deep into research or just having some fun!

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