Fetch.ai has proposed to Ocean Protocol to peacefully resolve the conflict that began after the collapse of the Artificial Superintelligence (ASI) alliance. Fetch.ai CEO Humayun Sheikh stated that he is ready to drop all lawsuits if Ocean returns 286 million FET tokens. Their total value is estimated at about $120 million.
Attempt to restore trust
During a live broadcast on X (formerly Twitter), Sheikh said that an official offer letter will be sent in the coming days. More than 5,000 people listened to his speech. He emphasized that the goal is not to win in court, but to restore the trust of the community.
‘You may receive my letter as soon as tomorrow. The offer is simple: return the tokens to my community, and I will drop all claims,’ Sheikh said.
He also promised to pay all legal costs to speed up the signing of the agreement. The head of Fetch.ai noted that the companies should focus on development, not on mutual accusations. According to him, both teams have built their reputations over many years and should maintain respect for the community that supports their projects.
Ocean ready to consider the offer
According to validator GeoStaking, which is mediating between the parties, Ocean Protocol agreed to consider returning the tokens after receiving the official document. Sheikh confirmed that the letter is already being prepared and may be sent by the end of the week.
The conflict between the companies has lasted for several months. It began after the failure of the ASI project, which united Fetch.ai, Ocean Protocol, and SingularityNET. The alliance was supposed to create an artificial intelligence ecosystem on the blockchain, but disputes over management and finances arose immediately.
Sheikh publicly accused Ocean Protocol of misusing funds and manipulating tokens. According to him, these actions led to a drop in the FET price and undermined investor trust.
Accusations and Ocean Protocol’s response
Ocean Protocol denied all accusations. The company stated that it acted in good faith and complied with all alliance conditions. However, Bubblemaps analysts published data that cast doubt on these statements.
According to the report, a multisignature wallet associated with Ocean exchanged about 661 million OCEAN tokens for 286 million FET. At the time, this was equivalent to $120 million. Moreover, part of the tokens — about 160 million — was sent to Binance, and another 109 million — to trading firm GSR Markets.
These transfers caused a stir in the community. Users suggested that Ocean was secretly selling assets, which increased pressure on the FET price. The situation escalated when, on October 9, Ocean Protocol left the ASI alliance without explaining why such large transfers were made. After that, the token price plummeted from $3.22 to $0.26. This 93% drop became one of the largest of the year.
Bruce Pon’s response and new accusations
Ocean Protocol founder Bruce Pon published a statement rejecting all accusations from Fetch.ai. He called the price collapse a result of overall market volatility, not his team’s actions.
‘The 93% drop in FET is explained by market sentiment and reduced liquidity, not by our decisions,’ Pon said.
In turn, he accused Fetch.ai and SingularityNET of selling assets worth more than $500 million. According to Pon, it was their actions that caused panic among investors and weakened the entire alliance. Pon emphasized that Ocean left the project because it ‘could not remain part of a structure that violates its own financial principles.’
What’s next?
Analysts believe that a peaceful agreement will be an important step toward restoring market trust. The conflict has already affected the entire decentralized AI sector and cooled investor interest.
Fetch.ai is preparing a legal proposal, and Ocean Protocol promises to officially consider it. If the parties reach an agreement, it could become a rare example of maturity in an industry where disagreements more often end up in court rather than at the negotiating table.
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