Fetch.ai and Ocean Resolve $120M Token Dispute – FET Holders Suffer 93% Loss

Fetch.ai and Ocean End $120M Token Feud — FET Holders Still Reeling From 93% Crash

After weeks of conflict between Fetch.ai and the Ocean Protocol Foundation, there seems to be a move toward a resolution. Fetch.ai CEO, Humayun Sheikh, indicated that his company will withdraw all legal actions if Ocean Protocol agrees to return 286 million FET tokens. This return, valued at approximately $120 million at the time of transfer, could help restore some stability for FET holders reeling from significant losses.

Key Takeaways

Fetch.ai and Ocean Protocol are close to settling a dispute regarding the return of 286 million FET tokens.
CEO Humayun Sheikh has offered to drop all legal claims if the tokens are returned.
The dispute's origins involve accusations of improper token conversions by Ocean Protocol.
The FET token has suffered a substantial decline, losing over 93% of its value.
Both projects are under scrutiny as they navigate governance issues and market reactions.

Moving Toward Settlement

The prolonged conflict between Fetch.ai and the Ocean Protocol Foundation appears to be approaching a resolution. During a recent X Spaces session, Fetch.ai's CEO, Humayun Sheikh, announced that his company is willing to drop all legal claims against Ocean Protocol in exchange for the return of 286 million FET tokens, which were valued at approximately $120 million at the time of the alleged transfer to centralized exchanges.

Sheikh described this offer as a last effort to settle the dispute amicably, preventing further legal entanglements. “You can have my letter tomorrow. The offer is simple: give my community back the tokens, and I will drop every legal claim,” he stated. He also mentioned that Fetch.ai would cover any relevant legal costs related to the token return, framing the action as a means to protect the community and promote future collaboration.

GeoStaking, a Fetch.ai validator node helping facilitate discussions, confirmed that Ocean Protocol is prepared to return the tokens pending a formal proposal. If the proposal is finalized, a resolution could be in place as soon as Friday, ending months of rising tensions between the two blockchain entities.

Origins of the Conflict

This dispute traces back to accusations from Fetch.ai that an Ocean Protocol-linked multisignature wallet transitioned 661 million OCEAN tokens into 286 million FET tokens and then transferred significant amounts to centralized exchanges. According to the blockchain analytics platform Bubblemaps, about 160 million FET were directed to Binance and 109 million to GSR Markets, amounting to approximately $120 million in total transactions.

In response, Ocean Protocol has denied any wrongdoing, asserting that the conversion processes adhered to transparency as part of their treasury management policies. Furthermore, on October 9, Ocean Protocol withdrew from the Artificial Superintelligence (ASI) Alliance due to governance disagreements, although this statement did not address the ongoing token transfer dispute.

Tension in the ASI Alliance

The ASI Alliance was established in 2024, uniting Fetch.ai, Ocean Protocol, and SingularityNET to create a unified token framework centered around the FET asset. This partnership aimed to enhance decentralized AI infrastructure through the synergistic use of their data-sharing, computing, and model-sharing technologies. However, relationships soured in mid-2025 when Fetch.ai alleged that Ocean Protocol minted additional OCEAN tokens before the alliance and covertly transferred them into FET without proper notice.

Sheikh claimed these tokens were originally intended for community incentives but were instead redistributed across wallets and sold on exchanges. In response to the controversy, he publicly offered a $250,000 reward for information on the signatories of the OceanDAO multisignature wallet.

Ocean Protocol countered with a firm denial, stating their treasury remained intact and that negotiations had entered formal arbitration. They claimed they offered to waive confidentiality to promote transparency, but Fetch.ai rejected this offer.

Declining Market Sentiment

The fallout from the Fetch.ai and Ocean Protocol feud has severely impacted the FET token, with its price plummeting over 93%, from a peak of $3.22 in 2024 to around $0.26 today. Ocean founder Bruce Pon argued in a blog post that the decline in FET's price was not related to their exit from the ASI Alliance or any token conversions. Instead, he attributed it to overarching market sentiment and liquidity issues caused by significant sales from other alliance members.

Pon accused Fetch.ai and SingularityNET of neglecting decentralization principles and executing poor liquidity deals, which further destabilized the market.

In light of these developments, Sheikh emphasized that resolving the issue by returning the 286 million FET tokens could prevent lengthy litigation and re-establish confidence among affected token holders.

FET Trading Data

With the ongoing feud having adverse effects on market trust, the potential settlement could represent a turning point for both Fetch.ai and Ocean Protocol. If an agreement to return the tokens is reached, it may help alleviate one of the most heated disputes in the crypto industry during 2025, while also testing the decentralized governance of blockchain alliances.

Market Analysis