Fetch.ai and Ocean End $120M Token Feud – FET Holders Still Reeling From 93% Crash
The weeks-long dispute between Fetch.ai and the Ocean Protocol Foundation seems to be nearing decision, as each side transfer towards a settlement that might carry an finish to one of the crucial publicized token controversies within the AI-blockchain area.
Fetch.ai CEO Humayun Sheikh mentioned on Thursday that his firm will drop all authorized claims towards Ocean Protocol if the latter agrees to return 286 million FET tokens, value about $120 million on the time of the alleged switch, to the Fetch neighborhood.
Peace or Persistence? Will Ocean Return the Tokens and End the Feud?
The announcement came during an X Spaces session, the place Sheikh described the provide as a last try and settle the matter and not using a prolonged authorized battle.
“They predict a authorized proposal from us for the return of the tokens,” Sheikh mentioned. “You can have my letter tomorrow. The provide is straightforward: give my neighborhood again the tokens. I’ll drop each authorized declare.”
Tune in stay as we speak at 20:00 UTC to an open dialog with https://t.co/kJ9URVqmjT CEO – Humayun Sheikh as we overtly talk about Ocean’s response and claims. https://t.co/hKfrCBIKjC
— Fetch.ai (@Fetch_ai) October 23, 2025
He added that Fetch.ai would cowl any related authorized prices if the tokens are returned, calling the transfer “an effort to guard the neighborhood and transfer ahead.”
GeoStaking, a Fetch.ai validator node that helped mediate the discussions, confirmed that Ocean Protocol is prepared to return the tokens as soon as a proper written proposal is submitted.
The proposal may very well be finalized as early as Friday, probably placing an finish to months of escalating tensions.
The dispute stems from Fetch.ai’s accusation that an Ocean Protocol-linked multisignature pockets transformed 661 million OCEAN tokens into 286 million FET tokens and later transferred a big portion of them to centralized exchanges.
Blockchain analytics platform Bubblemaps reported that round 160 million FET had been despatched to Binance and one other 109 million to GSR Markets, totaling roughly $120 million in transactions.
Ocean Protocol denied any misappropriation, calling the claims deceptive and insisting that each one token conversions had been carried out transparently below its treasury administration insurance policies.
The foundation withdrew from the Artificial Superintelligence (ASI) Alliance on October 9, citing governance disagreements and authorized constraints. The withdrawal assertion confirmed the exit however didn’t handle the disputed transfers.
What Went Wrong within the ASI Alliance? Fetch.ai and Ocean’s Feud Test AI Token Unity
The ASI Alliance, formed in 2024, merged Fetch.ai, Ocean Protocol, and SingularityNET below a unified token framework utilizing FET because the central asset.
The collaboration was supposed to advance decentralized synthetic intelligence infrastructure by combining their respective knowledge, compute, and model-sharing applied sciences.
Tensions, nonetheless, escalated in mid-2025 after Fetch.ai alleged that Ocean Protocol minted extra OCEAN tokens previous to the merger and later transformed them into FET with out correct disclosure.
Sheikh claimed that the transferred tokens had been meant for “neighborhood incentives” however had been as an alternative distributed throughout a number of wallets and offered via exchanges.
On October 21, Sheikh offered a $250,000 bounty for details about the signatories of the OceanDAO multisignature pockets and their connection to the Ocean Protocol Foundation.
He additionally threatened to fund class-action lawsuits in multiple jurisdictions, urging affected holders to collect proof of potential losses.
Ocean Protocol responded in a public assertion denying all allegations and asserting that its treasury “stays intact.”
The basis confirmed that the dispute had entered formal arbitration below the ASI merger framework and claimed that it had provided to waive confidentiality to make sure transparency.
The provide, Ocean mentioned, was declined by Fetch.ai.
FET Token Down 93% as Fetch.ai–Ocean Rift Shakes AI Blockchain Sector
In a separate weblog submit, Ocean founder Bruce Pon argued that the steep decline in FET’s value, down over 93% from its 2024 peak of $3.22 to round $0.26, was unrelated to Ocean’s exit or any token conversions.
“The drop was on account of broader market sentiment and volatility,” Pon wrote, blaming liquidity points and large-scale FET gross sales by different alliance members for draining neighborhood belief.
Ocean’s assertion additionally accused the ASI companions of disregarding decentralization ideas by speeding the merger, ignoring audit suggestions, and pressuring members into choices with out consensus.
It mentioned Ocean “maintained fiscal self-discipline” and “acted solely for the good thing about its neighborhood,” whereas accusing Fetch.ai and SingularityNET of executing poorly timed liquidity offers that amplified market instability.
Sheikh dismissed these claims, saying Ocean ought to have raised its considerations as an alternative of liquidating neighborhood tokens. He reiterated that returning the 286 million FET would permit each side to keep away from protracted litigation and rebuild confidence amongst token holders.
The feud has had a extreme impression on market sentiment. Fetch.ai’s FET token is at present buying and selling at round $0.259, representing a 64% decline over the previous three months and a drop of greater than 92% from its all-time high.
Ocean Protocol’s OCEAN token has additionally fallen about 4% within the final 24 hours to $0.30, although it stays up 36% over the previous week.
The settlement proposal marks a possible turning level for each AI-blockchain tasks. If Ocean Protocol formally agrees to return the tokens, it might finish one of many crypto trade’s most contentious disputes of 2025, a feud that not solely rattled traders but in addition examined the credibility of decentralized governance inside high-profile blockchain alliances.
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