The ongoing dispute between Fetch.ai and the Ocean Protocol Foundation may soon find a peaceful resolution, with both parties expressing a willingness to resolve their differences outside of court. The dispute, which began after their brief merger into the Artificial Superintelligence Alliance, centers on the alleged sale of millions of FET tokens.
In brief
- Fetch.ai is proposing a full legal takedown if Ocean Protocol returns 286 million FET tokens allegedly sold during the ASI merger.
- Blockchain data links Ocean wallets to FET transfers worth $120 million, sparking transparency concerns in the crypto community.
- Ocean Protocol left the ASI Alliance in October, citing ethical and strategic reasons amid ongoing financial scrutiny.
- The ASI token's performance falls 93% from its peak, reflecting investor fear, weak sentiment and prolonged market pressure.
Fetch.ai offers out-of-court settlement with Ocean Protocol to end their legal dispute
Fetch.ai announced on Thursday that it is prepared to withdraw all legal claims against the Ocean Protocol Foundation if the latter agrees to return 286 million FET tokens allegedly sold during the merger period. Fetch.ai CEO Humayun Sheikh confirmed the offer during a session on X Spaces, emphasizing the company's desire to resolve this dispute quickly and transparently.
Sheikh said Ocean Protocol is awaiting a formal proposal from Fetch.ai for the return of the disputed tokens, adding that the letter would be delivered the very next day. He explained that the offer is simple: all legal action will be dropped once the tokens are returned to the Fetch.ai community.
They are waiting for a legal proposal from us for the return of the tokens. You can have my letter tomorrow. The offer is simple: return the tokens to my community. I will withdraw all legal claims.
Humayun Sheikh
Sheikh also said that Fetch.ai will cover the associated legal costs upon finalization of the agreement, ensuring a smooth process.
According to GeoStaking, an FET validator node that mediated the discussions, Ocean Protocol is willing to return tokens upon receipt of a formal written proposal. Sheikh added that the official offer could be finalized as early as Friday.
If the deal is successful, it will mark an important step toward closing a dispute that has attracted significant attention within the crypto community. Both organizations have faced criticism and uncertainty since their merger efforts began, and a legal showdown could further damage their reputations and financial standing.
On-chain data links Ocean Protocol wallet to large FET token transfers
This development follows Sheikh's earlier offer of a $250,000 bounty for information on individuals controlling OceanDAO's multisignature wallet and their potential ties to the Ocean Protocol Foundation.
Multisignature wallets, or “multisig,” are crypto wallets that require multiple approvals to authorize transactions. Decentralized organizations often use them to increase security and accountability.
Despite Ocean Protocol's denials of any wrongdoing, blockchain analytics from Bubblemaps suggest that a wallet linked to the foundation converted approximately 661 million OCEAN tokens into 286 million FET tokens, valued at approximately $120 million at the time. Of these, 160 million FET tokens were reportedly transferred to Binance, while another 109 million were transferred to GSR Markets.
Crypto-AI alliance falters as FET plunges
Ocean Protocol has officially left the ASI Alliance on October 9, without providing an explanation regarding the disputed transfers. The alliance, formed in March 2024 by Fetch.ai, SingularityNET and Ocean Protocol, aimed to combine resources and expertise to advance decentralized artificial intelligence, with FET designated as the alliance's lead token.
Since the formation of the ASI Alliance, the FET token has lost over 90% of its value, going from a peak at $3.22 to around $0.26.
Current market data highlights the following points:
- Bearish Market Sentiment: The Artificial Superintelligence Alliance (FET) currently presents a bearish outlookwith a fear and greed index at 30, indicating investor caution.
- Severe annual decline: FET price has fallen 80% over the past year, reflecting sustained bearish momentum.
- Underperformance relative to peers: The token has underperformed all top 100 crypto assets, including Bitcoin and Ethereum, over the same period.
- Technical Weakness: FET continues to trade below its 200-day simple moving average, signaling prolonged bearish pressure.
- Low Market Strength: The token has only seen 10 positive trading days over the past month (33%) and remains 93% below its all-time high.
Ocean Protocol founder Bruce Pon explained that the price drop was not due to Ocean's departure, but rather broader market conditions and liquidity pressures involving Fetch.ai and SingularityNET.
Pon said Ocean Protocol left the ASI Alliance for ethical and strategic reasons and plans to issue a detailed response to the recent allegations. As negotiations progress, both sides appear motivated to resolve their differences, signaling a possible end to one of the most high-profile disputes in the AI-driven crypto sector.
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