Moltbot founder denies issuing tokens! CLAWD fake scam collapses and drops to zero

Open-source AI assistant Moltbot founder Peter Steinberger issued a stern statement on Monday, emphasizing that he has never issued tokens and has no plans to do so. During the project’s rebranding, scammers hijacked GitHub and X accounts to launch a fake $CLAWD token. The token was listed on the Solana chain and briefly soared to a market cap of $16,000,000, but rapidly collapsed to near zero after the founder denied any association.

Brand Rebranding Vulnerability Opens Door for Scammers

The issue traces back to a seemingly routine brand adjustment for the Moltbot project. Due to trademark legal disputes, the AI tool was forced to change its name from ClawdBot to Moltbot. Such rebranding is common in the tech industry to avoid conflicts with existing trademark holders. However, a technical vulnerability during this process inadvertently created an opening for scammers.

During the rebranding, due to the complexity of account naming rules and platform policies, the original GitHub and X (formerly Twitter) accounts experienced a brief “vacuum period.” When the old account names were released and new accounts had not yet been fully established, scammers quickly registered these freed-up usernames. This “account squatting” is a classic scam tactic, but it becomes especially effective during rebranding, as followers and community members may not immediately realize the accounts have been impersonated.

After taking over these accounts, scammers exploited the platforms’ existing reputation and follower base to act. They posted seemingly official announcements claiming that the ClawdBot project was launching a native token $CLAWD, providing fake contract addresses and purchase links. Since Moltbot gained rapid popularity within developer communities, these false messages spread quickly. Many followers, trusting the original project, clicked on these scam links unguarded.

Peter Steinberger later stated he is working with GitHub’s security team to regain control of the hijacked accounts. However, such recovery processes typically require days or weeks of identity verification and legal procedures. In the meantime, scammers successfully used this window to issue tokens, hype, and sell off their holdings. This case highlights the vulnerabilities in account security mechanisms on Web2 platforms like GitHub and X when faced with rapid brand name changes.

The lessons from this rebranding vulnerability are not limited to Moltbot but serve as a warning to other projects planning to rebrand. During a name change, projects should preemptively secure all related platform accounts with consistent names, maintaining full control over both old and new accounts during the transition. Additionally, announcing the rebrand via official websites and multiple channels can reduce user confusion.

The Crazy Rollercoaster of Fake $CLAWD Tokens

Scammers used hijacked accounts to launch a $CLAWD token on the Solana blockchain. The choice of Solana was no coincidence; this chain is known for low transaction costs and fast confirmation times. More importantly, it hosts many simplified platforms for issuing “meme tokens,” such as Pump.fun and Raydium. These platforms allow anyone to create tokens and list them for trading within minutes, requiring little technical knowledge or upfront capital.

The $CLAWD token’s market cap skyrocketed to about $16 million in a very short time. This sudden surge is typical of meme tokens, driven by FOMO (fear of missing out) and viral social media spread. Early investors claimed to have gained returns of dozens or even hundreds of times, with success stories spreading rapidly through Telegram groups and X, attracting more speculators.

However, when Peter Steinberger posted a stern denial of any connection to $CLAWD on social media, market sentiment instantly reversed. Investors suddenly realized their purchased tokens were not supported by Moltbot but were part of a complete scam project. Panic selling ensued, liquidity dried up within hours, and the token’s price plummeted as if falling freely.

Timeline of the Fake $CLAWD Collapse

Peak Market Cap: approximately $16 million (on Solana)

Issuance Method: impersonation via hijacked accounts

Target Audience: Moltbot developer community and crypto speculators

Collapse Trigger: founder publicly denies association

Final Outcome: market cap drops to six figures or less, approaching zero

This collapse from $16 million to near zero exemplifies a textbook “pump and dump” scam in crypto markets. Scammers typically sell off their holdings at the peak, leaving ordinary investors holding tokens that become illiquid. Once liquidity vanishes, these tokens become essentially untradeable, and holders see their investments wiped out.

Later investors suffered heavy losses. Some shared their experiences on social media, claiming to have invested thousands of dollars only to get back mere dollars’ worth. This financial and emotional trauma often erodes trust in the entire crypto industry. Worse, due to the anonymity and cross-border nature of Solana transactions, recovering funds is nearly impossible, and law enforcement agencies find it difficult to trace the scammers’ true identities.

Founder’s Firm Response: I Will Never Issue a Token

Faced with mounting messages and accusations, Peter Steinberger posted a strongly worded public statement on X. His tone revealed frustration and anger, unusual for a developer usually focused on technical work. He wrote, “I will never issue any cryptocurrency.” The word “never” emphasizes his firm stance and aims to put an end to all speculation about Moltbot tokens.

Steinberger further clarified that any project listing him as a token holder, advisor, or supporter is a scam, with no exceptions. He explicitly stated he will not accept any fees, advisory roles, or partnership offers related to tokens. This comprehensive rejection is relatively rare in the crypto space, where many tech founders tend to retain some flexibility when faced with tokenization temptations.

He also urged the crypto community to stop harassing him. Apparently, after the fake token incident, many investors, speculators, and crypto enthusiasts flooded his private messages—some asking for token details, others accusing him of involvement in scams, and some proposing various business collaborations. This ongoing harassment severely disrupted his normal work, preventing him from focusing on Moltbot’s development.

Steinberger’s background lends weight to his statement. He previously founded PSPDFKit, a company specializing in enterprise PDF processing software, which he sold for about €100 million. This deal provided him financial freedom, allowing him to focus on AI research he is passionate about, without needing to issue tokens to raise funds or seek short-term profits.

He explained in the statement that scammers’ actions are damaging genuine projects. Now he has to spend significant time and effort countering false accusations, clarifying misunderstandings, and answering endless crypto-related questions instead of coding and improving AI tools. This misallocation of resources not only delays Moltbot’s progress but also negatively impacts his mental health.

Systemic Problem: AI Projects as Targets for Crypto Scams

The Moltbot incident reveals a broader trend: when AI projects gain popularity in developer communities, crypto scammers act with astonishing speed. They closely monitor hot topics in tech circles, and once they spot a potentially influential new project, they quickly impersonate it, create fake tokens, and exploit the hype for profit. The entire process can be completed within hours, far faster than the project team can respond.

This phenomenon is driven by the speculative culture of crypto markets. Many investors do not deeply research project fundamentals or team backgrounds but rely on social media buzz and price movements. When an AI project sparks discussion on Hacker News, Reddit, or X, crypto speculators automatically assume a related token will soon be launched and rush to buy early. Scammers exploit this psychology.

For developers without a crypto background, they often lack experience and resources to combat such scams. Steinberger’s career has focused on enterprise software and AI research, and he is unfamiliar with the mechanics of crypto markets, community culture, and scam tactics. When he was suddenly embroiled in a token scam controversy, he lacked a legal team to handle infringement issues or a PR strategy to manage community communication, relying solely on his personal X account to issue statements.

This situation creates a chilling effect in the AI developer community. When creating open-source AI tools might trigger crypto scams and harassment, some developers may choose to stay low-profile or delay public releases, hindering open-source innovation. Worse, it blurs the line between legitimate AI projects and speculative crypto ventures, damaging the industry’s reputation.

Steinberger’s message is simple: Moltbot is an AI project, not a cryptocurrency. He needs builders, contributors, and users, not speculators and token holders. His experience offers a valuable warning: when bringing AI projects into the public eye, prepare for potential crypto scam threats—protect social media accounts, issue clear token policies, and collaborate with platforms to establish identity verification mechanisms.

For crypto investors, this case underscores the importance of due diligence. Before investing in any new token, verify the project founder’s official statements, check the authenticity of contract addresses, assess liquidity risks, and remain skeptical of overly rapid wealth promises. When a non-crypto AI project suddenly “launches a token,” it should itself be a major red flag.