.png){kind=logo}
A major feud has erupted between Fetch.ai CEO Humayun Sheikh and the Ocean Protocol Foundation, putting the Artificial Superintelligence (ASI) Alliance at risk. The dispute involves about 286 million Fetch.ai (FET) tokens valued at roughly $84 million. The controversy has now spread to legal threats, blockchain evidence, and Binance’s sudden move to limit token deposits.
The ASI Alliance was formed in 2024 to merge Fetch.ai, Ocean Protocol, and SingularityNET under a shared AI token framework. The goal was to combine AI and blockchain technology to drive decentralized innovation. However, this vision now faces turmoil as Ocean Protocol officially withdrew, citing undisclosed legal reasons.
Earlier this month, Ocean Protocol declared its full exit from the ASI Alliance. It also resigned from all positions within the Singapore-based Superintelligence Alliance Ltd., marking the end of its collaboration with Fetch.ai and SingularityNET.
Ocean stated that legal constraints prevented full disclosure but hinted at deeper internal tensions. Its message on X urged patience, saying it would reveal facts once permitted.
The conflict intensified when Sheikh accused Ocean of minting and transferring a large number of OCEAN tokens before the merger. He claimed 719 million OCEAN were minted in 2023, with 661 million later swapped for 286 million FET tokens. Sheikh alleged some of these were sent to centralized exchanges and market makers without disclosure.
He said such actions would amount to a “rug pull” if conducted outside the merger context. Ocean dismissed the accusations as “unfounded claims and harmful rumors,” maintaining its treasury remained intact. The foundation added that Sheikh declined to waive confidentiality on adjudicator findings.
Amid the growing conflict, Binance announced that it would stop supporting Ocean ERC-20 token deposits starting October 20. The exchange warned that any ERC-20 deposits made after that date would not be credited, possibly leading to asset loss.
Although Binance did not directly cite the dispute as a reason, the timing raised speculation of internal investigations. Sheikh interpreted the move as Binance responding to his public calls to review Ocean’s token transfers.
Following this, Sheikh vowed to fund class-action lawsuits in multiple jurisdictions. He also invited FET holders to collect and submit evidence against Ocean. At the same time, he urged exchanges like GSR and ExaGroup to assist in investigations.
The token conversion mechanism under the ASI Alliance merger was another source of tension. OCEAN holders were offered a fixed exchange rate to swap their tokens for FET, rebranded as ASI. This arrangement introduced inflationary pressure and affected both tokens’ prices.
Many Ocean community members resisted the plan, viewing it as damaging to OCEAN’s long-term value. Approximately 270 million OCEAN tokens across 37,000 wallets remain unconverted.
To rebuild confidence, Ocean launched a buyback and burn program funded by project profits. The foundation also pushed for relisting on Coinbase, Kraken, and Binance US to restore independence.
As this dispute unfolds, investors are left asking: Can the ASI Alliance survive internal fractures and regain trust among its stakeholders?
The feud between Fetch.ai and Ocean Protocol has cast uncertainty over the Artificial Superintelligence (ASI) Alliance’s future. The $84 million dispute involving 286 million FET tokens, Binance’s deposit halt, and conflicting claims over token management have shaken investor confidence.
