Settlement Reached Soon in Fetch-Ocean Conflict, Putting Decentralized Governance Approaches to the Test
- Fetch.ai and Ocean Protocol near settlement: Fetch proposes dropping lawsuits if Ocean returns 286M FET tokens ($120M) to the community. - Dispute stems from 2024 ASI Alliance merger, with Fetch accusing Ocean of covert token conversions that triggered FET's 93% price collapse. - Ocean denies misconduct but agrees to return tokens if formalized, while Fetch offers $250K bounty for evidence of alleged multisig wallet signatories. - Resolution could set precedent for decentralized governance disputes, avoi
The ongoing conflict between Fetch.ai and Ocean Protocol has reached a pivotal stage, as both parties are reportedly moving closer to an agreement that could resolve one of the most heated token disputes in the AI-blockchain industry. On October 24, Fetch.ai CEO Humayun Sheikh stated that his company would withdraw all legal actions against Ocean Protocol if Ocean returns 286 million
The dispute stems from the Artificial Superintelligence (ASI) Alliance, a partnership formed in 2024 that brought together Fetch.ai, Ocean Protocol, and SingularityNET under a unified token system based on FET. The alliance was designed to merge decentralized AI resources by integrating data, computing power, and model-sharing. However, the situation worsened in mid-2025 when Fetch.ai accused Ocean Protocol of secretly creating extra OCEAN tokens before the merger and swapping them for FET without proper transparency. Sheikh claimed these tokens were spread across several wallets and sold on exchanges, damaging community confidence and sparking a market downturn, as reported by Yahoo Finance.
Ocean Protocol has refuted all accusations, maintaining that its treasury activities were open and followed governance rules. The foundation also blamed Fetch.ai and SingularityNET for poorly timed liquidity moves that worsened market volatility. In a public response, Ocean’s founder Bruce Pon attributed the sharp decline in FET’s price to overall market trends, liquidity challenges, and significant sales by alliance partners, while defending the financial management of the merger, according to Yahoo Finance.
Sheikh’s proposal—dependent on Ocean Protocol returning the contested tokens—has been received with cautious hope. GeoStaking, a validator node that facilitated the negotiations, confirmed that Ocean is prepared to cooperate once a formal offer is made. If successful, the agreement could prevent lengthy court battles and help rebuild trust among token holders, though doubts persist. Sheikh also revealed a $250,000 reward for information on the signers of Ocean Protocol’s multisig wallet, who he alleges managed the token swaps. The reward has now been closed, with Sheikh stating he has enough evidence to pursue legal action if the settlement does not succeed, according to Yahoo Finance.
In the meantime, Fetch.ai has introduced measures to support FET’s price. The company announced it would burn 50 FET per wallet registered on its asi1.ai platform each week, aiming to decrease supply and stimulate demand. Technical indicators suggest the token could be forming a bottom near $0.23, with buyers trying to recover the 7-day simple moving average (SMA) and the relative strength index (RSI) showing divergence from oversold territory, according to
This dispute carries wider significance for decentralized governance in blockchain partnerships. Observers argue that the conflict exposes weaknesses in collaborative models, where misaligned interests and lack of transparency can erode trust. Should the settlement go through, it may serve as a model for resolving major token disputes without drawn-out legal battles—a crucial test for the legitimacy of decentralized governance frameworks in 2025.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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