Fetch.ai and Ocean AI Dispute Resolution: $286M FET Tokens at Stake

2025-10-24 09:08:03

Fetch.ai and Ocean Protocol are on the verge of resolving their high-stakes dispute over $286 million in FET tokens, with Fetch.ai agreeing to drop legal action if Ocean returns the funds. This potential settlement comes after months of accusations, threats of lawsuits, and market turmoil in the Artificial Superintelligence (ASI) Alliance.

Dispute Origins: Token Conversion and Alleged Misuse

The conflict erupted in September 2025 when Fetch.ai CEO Humayun Sheikh accused Ocean Protocol of minting 719 million OCEAN tokens in 2023 and converting 661 million into 286 million FET tokens in July 2025 without disclosure. Sheikh alleged these tokens, worth $84 million at the time, were transferred to Binance and GSR Markets, contributing to a 93% price drop in FET from its $3.45 peak in March 2024. Ocean denied the claims, calling them “unfounded” and proposing to waive confidentiality on an adjudicator’s findings, which Sheikh rejected.

The feud traces back to the 2024 ASI Alliance merger, uniting Fetch.ai, Ocean, and SingularityNET under FET. Sheikh labeled it a “rug pull,” claiming funds intended for community use were misused. Blockchain data from Bubblemaps and Whale Alert confirmed the conversions, with 160 million FET sent to Binance and 109 million to GSR.

Token Value: 286M FET at $0.25 = $71.5M today; $84M at conversion.
FET Drop: 93% from $3.45 ATH.
OCEAN Impact: Down 4% to $0.25.

Resolution Terms: Return Tokens, Drop Lawsuits

On October 20, 2025, Fetch.ai announced it would cancel all pending legal claims if Ocean returns the 286 million FET tokens. Sheikh offered a $250K bounty for OceanDAO signatory details, funding class-action lawsuits in three jurisdictions for FET holders. Binance suspended OCEAN deposits on October 15, citing “legal risk,” adding pressure.

Ocean, which withdrew from ASI in October, denied wrongdoing and suggested arbitration under merger terms. The settlement proposal avoids escalation, with Fetch.ai bearing costs if resolved.

2025 Implications: AI Alliance Fractures

The dispute highlights governance risks in AI-crypto mergers, potentially eroding FET’s $300 million market cap and 90% drop from highs. It underscores the need for transparent tokenomics in DeFi’s $150 billion+ TVL era.

In summary, Fetch.ai and Ocean’s potential token return settlement mends a $286M rift, urging stronger protocols for 2025’s AI-DeFi fusion.

FET10.08%

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