Fetch.ai and Ocean Protocol Nearing $120M FET Token Dispute Settlement – Key Details
- What’s the Core of the Fetch.ai vs. Ocean Protocol Conflict?
- How Close Are We to a Settlement?
- What Do Blockchain Records Reveal?
- How Has the ASI Token Performed?
- What’s Next for the AI Crypto Alliance?
- Fetch.ai and Ocean Protocol Dispute: Your Questions Answered
Fetch.ai and Ocean Protocol are close to resolving a high-stakes dispute over 286 million FET tokens (worth ~$120M) allegedly sold during their short-lived merger under the Artificial Superintelligence Alliance (ASI). Fetch.ai has offered to drop all legal claims if Ocean returns the tokens, while blockchain data reveals controversial transfers to Binance and GSR Markets. The ASI token has plummeted 93% from its peak, reflecting broader crypto market pressures and investor skepticism. Both parties aim for an out-of-court resolution to avoid further reputational damage.
What’s the Core of the Fetch.ai vs. Ocean Protocol Conflict?
The feud stems from Ocean Protocol’s alleged sale of 286 million FET tokens during the ASI alliance’s merger earlier this year. Blockchain analytics firm Bubblemaps traced 661 million OCEAN tokens converted to FET, with $120M worth transferred to Binance and GSR Markets. Fetch.ai CEO Humayun Sheikh called this a "breach of trust," while Ocean maintains the transactions were legitimate. The ASI alliance, formed in March 2024 to advance decentralized AI, began unraveling when Ocean cited "ethical differences" upon exiting in October.
How Close Are We to a Settlement?
Sheikh announced on X Spaces that Fetch.ai WOULD withdraw all legal claims if Ocean returns the disputed tokens by October 27, 2025. GeoStaking, a FET validator mediating talks, confirms Ocean’s willingness to negotiate. "The offer is simple: Return the tokens to our community, and we’ll drop everything," Sheikh stated, adding that Fetch would cover legal costs. Ocean’s founder Bruce Pon claims they’re awaiting formal documentation but insists their exit was strategic, not fraudulent.
What Do Blockchain Records Reveal?
On-chain data shows:
- 160M FET sent to Binance wallets (now worth ~$41.6M at current $0.26/FET)
- 109M FET transferred to market maker GSR
- Transactions occurred during ASI’s liquidity crisis in August 2025
Sheikh previously offered a $250K bounty for info on Ocean’s multisig wallet controllers, intensifying scrutiny. Ocean maintains these were routine treasury operations.
How Has the ASI Token Performed?
The asi token (FET) reflects the alliance’s struggles:
| Metric | Value |
|---|---|
| Current Price | $0.26 (CoinMarketCap) |
| Peak Price | $3.22 (March 2024) |
| 1Y Decline | 80% |
| Fear & Greed Index | 30 (Extreme Caution) |
Pon attributes the drop to "market-wide liquidity pressures," but analysts at BTCC note FET underperformed 97% of top-100 crypto assets during the period.
What’s Next for the AI Crypto Alliance?
If settled, this could stabilize FET’s price and restore investor confidence. However, the saga has exposed governance challenges in decentralized alliances. As one Reddit user quipped, "This isn’t AI vs. AI—it’s old-fashioned human greed in blockchain clothing." Both projects now race to prove their tech can outshine the drama.
Fetch.ai and Ocean Protocol Dispute: Your Questions Answered
Why did Ocean Protocol leave the ASI alliance?
Ocean cited "ethical and strategic differences" upon exiting in October 2025, though specifics remain unclear. Founder Bruce Pon promised a detailed response soon.
How much are the disputed FET tokens worth today?
At current prices (~$0.26/FET), the 286M tokens equal ~$74.4M—far below the $120M value when transferred.
Could this dispute impact other AI crypto projects?
Potentially. The very public feud has heightened scrutiny on decentralized alliances’ transparency, possibly affecting investor sentiment sector-wide.
