diff --git a/litellm/proxy/auth/auth_exception_handler.py b/litellm/proxy/auth/auth_exception_handler.py
index f76949f4d11..1cc37c8121f 100644
--- a/litellm/proxy/auth/auth_exception_handler.py
+++ b/litellm/proxy/auth/auth_exception_handler.py
@@ -1,6 +1,7 @@
 """
 Handles Authentication Errors
 """
+from litellm.proxy.utils import hash_token 
 
 from typing import TYPE_CHECKING, Any, Optional, Union
 
@@ -115,7 +116,7 @@ class UserAPIKeyAuthExceptionHandler:
             user_api_key_dict.parent_otel_span = parent_otel_span
             user_api_key_dict.request_route = route
             user_api_key_dict.api_key = (
-                user_api_key_dict.api_key or UserAPIKeyAuth(api_key=api_key).api_key
+                user_api_key_dict.api_key or hash_token(api_key) if api_key else None
             )
 
             # Stamp identity onto the request's server span now, before the request