A conflict between Fetch.ai and Ocean Protocol appears to be coming to an end, as both sides move toward a deal that would see the return of 286 million FET tokens – worth approximately $120 million – allegedly transferred during the Artificial Superintelligence Alliance (ASI) merger.
The issue dates back to mid-2024, when Fetch.ai, Ocean Protocol, and SingularityNET formed the ASI Alliance to unite their AI-focused blockchain platforms under a single token framework. As part of this, Ocean Protocol converted 661 million OCEAN tokens into 286 million FET tokens. Blockchain analytics firm Bubblemaps traced the distribution of these FET tokens across dozens of wallets, with a significant portion ultimately transferred to Binance and OTC firm GSR Markets.
Fetch.ai claims the transfers were unauthorized and harmed FET holders by applying selling pressure to the market. On October 20, 2025, Fetch.ai publicly announced its intent to organize collective legal action and later offered a $250,000 bounty for information about the signatories of Ocean Protocol’s multisignature wallet.
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Ocean Protocol Withdraws from ASI
On October 9, 2025, Ocean Protocol officially withdrew from the ASI Alliance. It resigned all director and membership roles from the Superintelligence Alliance (Singapore) Ltd. In its public statement, Ocean described the alliance as a voluntary association and stated it had decided to refocus on its original mission of building decentralized data infrastructure.
Ocean Protocol cited diverging priorities and the need to maintain independent funding and governance as primary reasons for the departure. It also emphasized that 81% of the OCEAN token supply had already been converted into FET by that time. Approximately 270 million unconverted OCEAN tokens remain in circulation, held by more than 37,000 addresses.
Ocean announced that it would use profits from Ocean-derived spinouts to initiate a buyback-and-burn mechanism for OCEAN, thereby reducing the circulating supply. The project also encouraged exchanges to consider relisting OCEAN tokens independently.
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Public Dispute and Exchange Impact
As the dispute escalated, both parties released multiple statements on social media. Fetch.ai described Ocean’s actions as damaging to the alliance’s integrity, while Ocean rejected the allegations as “unfounded” and said it had acted within its rights. Ocean stated it had proposed waiving confidentiality over legal findings to provide transparency, a request it claimed was declined by Fetch.ai.
In parallel, Binance halted support for ERC-20 OCEAN deposits on October 20. While no direct link to the dispute was confirmed, the timing coincided with heightened scrutiny over the token’s movements.
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Negotiations Toward Resolution
On October 24, 2025, Fetch.ai indicated it was prepared to resolve the matter without litigation if Ocean returned the 286 million FET tokens. Sheikh stated the legal claims would be dropped and legal costs covered if an agreement was reached. According to validator GeoStaking, Ocean Protocol expressed willingness to return the tokens once the proposal was submitted in writing.
Ongoing Arbitration and Governance Implications
Ocean Protocol has stated that the matter has entered arbitration under the terms of the original ASI merger framework. Legal confidentiality continues to limit public disclosures from both sides.
The dispute highlights challenges surrounding multi-project governance, token conversion transparency, and community alignment in cross-chain alliances. While the ASI Alliance continues its activities with Fetch.ai and SingularityNET, Ocean’s exit has raised broader questions about voluntary participation, token autonomy, and accountability in decentralized collaborations.
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Market Impact
The conflict has coincided with a sharp decline in FET’s market performance. Over the past month, the token has dropped more than 56%, bringing its market capitalization to just over $600 million – down significantly from its peak of over $5 billion reached in mid-2024.
In contrast, OCEAN has gained 13% over the same period, though its market capitalization remains much lower, below $200 million. That said, it should be remembered that before the departure, the price of OCEAN has closely tracked the fixed merger rate of 1 OCEAN = 0.43 FET, due to the token conversion bridge.
