diff --git a/packages/assets-controllers/CHANGELOG.md b/packages/assets-controllers/CHANGELOG.md
index b2211ffd559..f7c8d09dd0f 100644
--- a/packages/assets-controllers/CHANGELOG.md
+++ b/packages/assets-controllers/CHANGELOG.md
@@ -20,6 +20,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - **BREAKING:** Standardize names of `CurrencyRateController` messenger action types ([#8561](https://github.com/MetaMask/core/pull/8561))
   - The `GetCurrencyRateState` messenger action has been renamed to `CurrencyRateControllerGetStateAction` to follow the convention. You will need to update imports appropriately.
   - These changes only affect the types. The action type strings themselves have not changed, so you do not need to update the list of actions you pass when initializing `CurrencyRateController` messenger.
+- `MultichainAssetsController`: Change Blockaid spam token filter to fail-open behavior ([#8580](https://github.com/MetaMask/core/pull/8580))
+  - When Blockaid bulk token scan API calls fail or are rejected, tokens are now allowed through rather than being blocked
+  - This prevents legitimate tokens from being blocked due to API outages or network issues
+  - Tokens are still filtered when the API succeeds and marks them as malicious
 
 ## [104.3.0]
 
diff --git a/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.test.ts b/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.test.ts
index b1ed3f34485..af0094b5040 100644
--- a/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.test.ts
+++ b/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.test.ts
@@ -1514,7 +1514,7 @@ describe('MultichainAssetsController', () => {
       ]);
     });
 
-    it('does not add tokens when bulkScanTokens throws (fail closed)', async () => {
+    it('adds tokens when bulkScanTokens throws (fail open)', async () => {
       const mockAccountId = 'account1';
       const token = 'solana:EtWTRABZaYq6iMfeYKouRu166VU2xqa1/token:SomeAddr';
 
@@ -1536,7 +1536,9 @@ describe('MultichainAssetsController', () => {
 
       await jestAdvanceTime({ duration: 1 });
 
-      expect(controller.state.accountsAssets[mockAccountId]).toStrictEqual([]);
+      expect(controller.state.accountsAssets[mockAccountId]).toStrictEqual([
+        token,
+      ]);
     });
 
     it('does not add tokens when bulkScanTokens returns empty (API error handled internally)', async () => {
@@ -1765,7 +1767,7 @@ describe('MultichainAssetsController', () => {
       ).toBeUndefined();
     });
 
-    it('drops tokens from batches that fail (partial fail closed)', async () => {
+    it('keeps tokens from batches that fail (partial fail open)', async () => {
       const mockAccountId = 'account1';
       // 120 tokens = batch 1 (100) + batch 2 (20)
       const tokens = Array.from(
@@ -1800,7 +1802,7 @@ describe('MultichainAssetsController', () => {
           }
           return Promise.resolve(results);
         }
-        // Second batch fails — its tokens must not be added
+        // Second batch fails — its tokens are allowed through (fail open)
         return Promise.reject(new Error('API timeout'));
       });
 
@@ -1822,12 +1824,14 @@ describe('MultichainAssetsController', () => {
         ),
       ).toBeUndefined();
 
+      // Tokens from the failed second batch (100-119) should be added (fail open)
       for (let i = 100; i < 120; i++) {
         const tokenCaip = `solana:EtWTRABZaYq6iMfeYKouRu166VU2xqa1/token:Token${String(i).padStart(3, '0')}`;
-        expect(storedAssets).not.toContain(tokenCaip);
+        expect(storedAssets).toContain(tokenCaip);
       }
 
-      expect(storedAssets).toHaveLength(99);
+      // 99 from batch 1 (excluding Token099) + 20 from batch 2 = 119 total
+      expect(storedAssets).toHaveLength(119);
     });
 
     it('periodic rescan ignores SPL tokens that Blockaid later marks malicious', async () => {
diff --git a/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.ts b/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.ts
index 4030d6b3c57..ee802dd0d68 100644
--- a/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.ts
+++ b/packages/assets-controllers/src/MultichainAssetsController/MultichainAssetsController.ts
@@ -826,7 +826,7 @@ export class MultichainAssetsController extends StaticIntervalPollingController<
   }
 
   /**
-   * Fail-closed Blockaid filter for newly detected `token:` assets (native/other namespaces unchanged).
+   * Fail-open Blockaid filter for newly detected `token:` assets (native/other namespaces unchanged).
    *
    * @param assets - CAIP assets to filter.
    * @returns Filtered list, original order preserved.
@@ -850,6 +850,10 @@ export class MultichainAssetsController extends StaticIntervalPollingController<
 
       for (const outcome of batchOutcomes) {
         if (outcome.status === 'rejected') {
+          // Fail-open: if API fails, allow all tokens in this batch through
+          for (const entry of outcome.entries) {
+            keptTokenAssets.add(entry.asset);
+          }
           continue;
         }
         for (const entry of outcome.entries) {