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155 updated first flagged18 Oct 2026

Key Tokens: capped, revocable stand-ins for the LLM keys your coding agent holds

A local proxy that gives each tool its own capped key with a kill switch. Developers and small teams pay monthly.

Crowded · OpenCode breach drains users' API keys

Written for: Small startup team, Solo builder

Next step

This week, ship the localhost proxy with a one-line OpenCode config that swaps a raw key for a $5-a-day capped token. Post it in OpenCode's Discord and on r/LocalLLaMA while the breach is still being discussed.

Why now

The earlier Key Tokens card was based on the idea that stolen keys feed distillation. Now a well-known open-source coding agent has lost real user keys, and users got real bills. Every OpenCode user who pasted a raw provider key is a warm prospect this week. Developers also spread keys across more providers as cheap flash models launch, so each person has more keys to lose.

What became possible

Attackers got into part of OpenCode's online platform, a popular open-source alternative to Claude Code and Cursor. They stole users' API keys and ran up charges on their AI accounts. The AI tools the team asked for help also refused to look at the malicious code.

Two ways in

  1. Key Tokens proxy

    An open-source localhost proxy that keeps the real OpenAI, Anthropic and OpenRouter keys in the OS keychain. It hands each tool a stand-in token with a daily dollar cap, a model allowlist and one-click revoke. It ships with ready-made configs for OpenCode, Codex CLI and Claude Code.

    Customer
    Individual developers running several coding agents on their own keys
    Model
    Free OSS. A $8 per user per month team tier adds shared caps, Slack alerts and an audit log
  2. Leak Bill Alarm

    Polls provider usage APIs every few minutes. If spend jumps past your usual rate, it alerts you and rotates the key automatically.

    Customer
    Indie hackers and freelancers who have been burned by surprise bills
    Model
    $5 per month prosumer subscription

Competition

Crowded

The scoped, capped, revocable stand-in key is already standard gateway functionality. OpenRouter's user-authorized capped keys come closest to the dev-tool BYOK case, and Byoky already does short-lived session tokens with per-app caps.

Full competition notes (9 competitors)

The scoped, capped, revocable stand-in key is already standard gateway functionality. OpenRouter's user-authorized capped keys come closest to the dev-tool BYOK case, and Byoky already does short-lived session tokens with per-app caps. LiteLLM, Portkey, Telnyx, TokenProxy and OrcaRouter all issue virtual keys with budgets. The one opening left is a neutral token standard that many tool vendors adopt and that works directly with the providers' own keys, where the value comes from the network rather than the proxy. That needs adoption by both tool vendors and model providers, and the providers' own scoped project keys or OpenRouter extending its sign-in flow could make it unnecessary. The Distillation Alarm space is early but weak as a standalone product. Distillation hurts the model providers, who run their own detection. Real campaigns spread across thousands of accounts, so watching one company's usage exports catches little. Methods are already public in research. It fits better as an anomaly or misuse feature inside a broker or gateway, sold as catching a compromised or misused key rather than model extraction.

  • OpenRouter (OAuth PKCE keys and provisioning API keys)

    Dev tools can get user-authorized keys with credit caps that can reset daily, weekly or monthly, or create, cap and disable keys from their server. BYOK usage can count toward the caps. This is very close to the broker-token idea.

  • Telnyx LLM Token Gateway

    Issues token keys with model allow-lists, budget and rate limits, per-user binding and immediate revocation.

  • Byoky

    Open-source browser key wallet. Apps get short-lived session tokens instead of raw keys, with per-app and per-provider spend caps enforced in a proxy. This is almost exactly the user-held version of the idea.

  • TokenProxy

    Rust BYOK gateway that issues per-developer or per-project proxy keys with their own limits. Maturity is unverified.

  • OrcaRouter

    Per-agent scoped keys, pitched as limiting the damage a compromised agent can do.

  • LiteLLM Proxy virtual keys

    Widely used open-source gateway with virtual keys, per-key budgets, model scoping and revocation sitting in front of real provider keys. Listed from prior knowledge, not from these searches.

  • Portkey virtual keys

    Commercial AI gateway that stores provider keys in a vault and issues virtual keys with budget limits. Listed from prior knowledge, not from these searches.

  • DeepInspect

    Startup publishing on detecting model distillation attacks in AI traffic. It is the closest thing found to the Distillation Alarm.

  • Embarrassingly Simple Detector for Model Extraction (arXiv 2606.05725)

    June 2026 research on detecting extraction by comparing traffic windows with historical benign traffic. It is not a product, but the method is public.

Checked 2026-10-18

Risks

  • Providers already offer project keys and workspace limits, and could add per-tool caps natively
  • Cloudflare AI Gateway and OpenRouter already sell spend caps
  • Users have to trust you with their keys, so the product has to be local-first and auditable

Strong tech readiness and team fit; open space is the weak point (5).

tech 9 · pull 6 · space 5 · fit 9 · build 9

Exposed

Companies that could benefit or be threatened. News and context, not investment advice.

Momentum of its main topic

85 developments this week +19 vs last week
21 Sep: 0 developments22 Sep: 0 developments23 Sep: 0 developments24 Sep: 0 developments25 Sep: 0 developments26 Sep: 0 developments27 Sep: 0 developments28 Sep: 0 developments29 Sep: 0 developments30 Sep: 0 developments1 Oct: 0 developments2 Oct: 0 developments3 Oct: 0 developments4 Oct: 0 developments5 Oct: 0 developments6 Oct: 0 developments7 Oct: 0 developments8 Oct: 16 developments9 Oct: 15 developments10 Oct: 9 developments11 Oct: 4 developments12 Oct: 9 developments13 Oct: 13 developments14 Oct: 16 developments15 Oct: 18 developments16 Oct: 13 developments17 Oct: 11 developments18 Oct: 6 developments19 Oct: 10 developments20 Oct: 11 developments
Stage: Coverage

Sources

  1. Hackers hit AI coding tool OpenCode, running up charges on users’ AI accountsTechCrunch AI
  2. The AI Wealth ProblemThe AI Daily Brief

Status history

  • 2026-10-18 Flagged as buildable