Fetch.ai and Ocean Protocol Near Settlement in $120M FET Token Dispute

The ongoing conflict between Fetch.ai and the Ocean Protocol Foundation may soon reach a peaceful resolution, with both sides signaling a willingness to settle their differences outside of the courts. The dispute, which began after their brief merger under the AI ​​Super Alliance, focuses on the alleged sale of millions of FET tokens.

Ocean Protocol is open to settlement as Fetch.ai offers a legal peace deal

Fetch.ai It announced on Thursday that it is ready to withdraw all legal claims against the Ocean Protocol Foundation if the latter agrees to return 286 million FET tokens reported to have been sold during the merger period. Fetch.ai CEO Humayun Sheikh confirmed the offer during a session on X Spaces, stressing the company’s desire to solve the problem quickly and transparently.

Sheikh stated that Ocean Protocol is waiting for a formal proposal from Fetch.ai to return the disputed tokens, adding that the message will be delivered the next day. He explained that the offer is straightforward, and all legal claims will be withdrawn once the tokens are returned to the Fetch.ai community.

They expect a legal proposal from us to return the codes. You can get my letter tomorrow. The offer is simple: give back my tokens to my community. I will drop every legal claim.

Humayun Sheikh

Sheikh also said that Fetch.ai will do so Covering associated legal costs With the agreement finalized, a smooth process is ensured.

According to GeoStake, the FET verification node that played an intermediary role in the talks, Ocean Protocol is open to returning tokens once it receives a formal written proposal. The sheikh added that the official offer may be completed on Friday.

If successful, the agreement would represent an important step toward ending the dispute that has attracted significant attention within the cryptocurrency community. Both organizations have faced scrutiny and uncertainty since their merger efforts began, and a legal showdown could further damage their reputations and financial positions.

Blockchain data links the Ocean Protocol wallet to massive transfers of FET tokens

This development comes on the heels of Sheikh’s previous offer of a $250,000 reward for information about the individuals controlling the OceanDAO multi-signature wallet and their possible links to the Ocean Protocol Foundation.

Multi-signature or “multisig” wallets are cryptocurrency wallets that require multiple approvals to allow transactions. They are often used by decentralized organizations to enhance security and accountability.

Although Ocean Protocol has denied any wrongdoing, blockchain analyzes from Bubblemaps indicate that a wallet associated with the organization converted approximately 661 million OCEAN tokens into 286 million FET tokens, valued at approximately $120 million at the time. Of these tokens, 160 million FET tokens went to Binance, while another 109 million were transferred to GSR Markets.

AI Crypto Alliance faces headwinds with FET chips

Ocean Protocol officially Withdrew from the ASI alliance on October 9, and provided no explanation regarding the disputed transfers. The alliance, formed in March 2024 by Fetch.ai, SingularityNET, and Ocean Protocol, aims to combine resources and expertise to advance decentralized AI, with FET set as the core token for the alliance.

Since the formation of the ASI alliance, FET has lost more than 90% of its value, falling from a high of $3.22 to around $0.26.

Current market data highlights the following:

• Bearish Market Sentiment: Super AI Alliance (FET) Currently Shows a bearish outlookWith the Fear and Greed Index reaching 30, indicating investor caution.
• Sharp annual decline: The price of FET has fallen by 80% over the past year, reflecting continued downward momentum.
• Poor performance versus peers: The token underperformed all of the top 100 crypto assets, including Bitcoin And Ethereum during the same period.
• Technical Weakness: The FET continues to trade below the 200-day SMA, indicating prolonged downward pressure.
• Declining Market Strength: The coin has recorded only 10 positive trading days in the past month (33%) and is still 93% below its all-time high.

Bruce Boone, founder of Ocean Protocol, explained that the price drop was not due to Ocean’s exit but instead due to broader market conditions and liquidity pressures involving Fetch.ai and SingularityNET.

Boone said Ocean Protocol left the ASI alliance for ethical and strategic reasons and plans to issue a detailed response to the latest allegations. As negotiations progress, both sides appear eager to resolve their differences, signaling a potential end to one of the world’s most famous conflicts. Crypto sector that focuses on artificial intelligence.

james c.

James Goodstem is a cryptocurrency journalist and market analyst with over three years of experience in crypto, Web3, and finance. It simplifies complex and technical ideas to engage readers. Outside of work, he enjoys football and tennis, which he follows passionately.

Disclaimer

The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.