Settlement Near for Fetch-Ocean Dispute, Testing Decentralized Governance Models

The long-simmering dispute between Fetch.ai and Ocean Protocol has reached a critical juncture, with both sides reportedly inching toward a resolution that could end one of the most contentious token controversies in the AI-blockchain sector. Fetch.ai CEO Humayun Sheikh announced on October 24 that his company would drop all legal claims against Ocean Protocol if the latter agrees to return 286 million FET tokens—worth approximately $120 million at the time of the alleged transfer—to the Fetch community. The proposal, made during an X Spaces session, marks a potential turning point in a feud that has seen FET's price plummet over 93% from its 2024 peak of $3.22 to around $0.26 as of October 25, according to Yahoo Finance.

The conflict traces its roots to the Artificial Superintelligence (ASI) Alliance, a 2024 collaboration uniting Fetch.ai, Ocean Protocol, and SingularityNET under a shared token framework anchored by FET. The alliance aimed to integrate decentralized AI infrastructure by combining data, compute, and model-sharing technologies. However, tensions escalated in mid-2025 after Fetch.ai accused Ocean Protocol of covertly minting additional OCEAN tokens before the merger and converting them into FET without proper disclosure. Sheikh alleged that these tokens were distributed across multiple wallets and sold on exchanges, eroding community trust and triggering a market rout, according to Yahoo Finance.

Ocean Protocol has denied all allegations, asserting that its treasury operations were transparent and compliant with governance policies. The foundation also accused Fetch.ai and SingularityNET of poorly timed liquidity deals that exacerbated market instability. In a public statement, Ocean founder Bruce Pon attributed FET's collapse to broader market sentiment, liquidity issues, and large-scale sales by alliance members, while defending the merger's fiscal discipline, Yahoo Finance reported.

Sheikh's settlement offer—conditional on Ocean Protocol returning the disputed tokens—has been met with cautious optimism. GeoStaking, a validator node that mediated the discussions, confirmed Ocean is willing to comply once a formal proposal is submitted. The resolution could avert protracted litigation and restore confidence among token holders, though skepticism remains. Sheikh also announced a $250,000 bounty for information identifying the signatories of Ocean Protocol's multisig wallet, which he claims orchestrated the token conversions. The bounty was recently closed, with Sheikh stating he has received sufficient evidence to proceed with legal action if the settlement fails, according to Yahoo Finance.

Meanwhile, Fetch.ai has taken steps to stabilize FET's value. The company announced weekly token burns of 50 FET per wallet registered on its asi1.ai platform, aiming to reduce supply and boost demand. Technical analysis suggests the token may be bottoming around $0.23, with buyers attempting to reclaim the 7-day simple moving average (SMA) and a relative strength index (RSI) showing signs of divergence from oversold levels, according to Crypto.news.

The feud has broader implications for decentralized governance in blockchain alliances. Critics argue the dispute highlights vulnerabilities in collaborative frameworks, where conflicting interests and opaque operations can undermine trust. If the settlement is finalized, it could set a precedent for resolving high-stakes token disputes without protracted litigation—a critical test for the credibility of decentralized governance models in 2025.