A high-stakes conflict has broken out between Fetch.ai CEO Humayun Sheikh and the Ocean Protocol Foundation, involving nearly 286 million FET tokens, currently valued at approximately $84 million. This internal fallout stems from a merger earlier in 2024 that united three major AI-focused blockchain projects—Fetch.ai, Ocean Protocol, and SingularityNET—under the Artificial Superintelligence (ASI) Alliance.
Allegations of Token Misuse Before ASI Merger
According to Sheikh, the dispute began when Ocean Protocol allegedly minted and transferred millions of OCEAN tokens prior to the ASI merger. He claims these tokens were later converted into FET and moved to cryptocurrency exchanges without proper disclosure or transparency.
Sheikh publicly compared the actions to a “rug pull”, a serious accusation in the crypto world that implies investors were misled or defrauded. He believes these transactions were executed to manipulate the alliance or take advantage of the merger transition, raising questions about ethical conduct and financial transparency.
Binance Halts Ocean Deposits Amid Escalating Dispute
As the situation intensifies, major crypto exchange Binance announced it would suspend support for Ocean token deposits starting October 20. While Binance did not directly link this move to the Fetch.ai–Ocean dispute, Sheikh claimed the action reflects growing concerns stemming from his public calls for a deeper investigation into Ocean Protocol’s token activity.
Ocean Protocol, however, has firmly denied the allegations. In an official response, the foundation stated that its treasury remains fully intact and that it is preparing to legally address the accusations made by Sheikh.
The fallout has shaken confidence in the ASI Alliance’s unity and raised broader concerns around governance, transparency, and collaboration in AI-blockchain mergers.
Final Thoughts
As both parties prepare for possible legal action, this conflict could set a precedent for how decentralized alliances manage internal disputes—especially when large sums and reputations are at stake. The crypto community now watches closely to see whether this situation resolves through negotiation or heads to the courtroom.
