- Fetch.ai proposes to withdraw legal claims if Ocean Protocol returns 286M FET tokens.
- Ocean Protocol indicates readiness to comply once an official proposal is received.
- The FET token has lost over 93% of its value since the Artificial Superintelligence Alliance merger.
Fetch.ai CEO Humayun Sheikh has offered to end the legal conflict with Ocean Protocol Foundation if the latter returns 286 million FET tokens allegedly sold during the merger of the Artificial Superintelligence Alliance (ASI).
The proposal, announced during an X Spaces session on Thursday, could bring an end to one of the most publicized disputes in the AI and blockchain sectors.
Sheikh said the move was to protect the Fetch.ai community from further uncertainty and restore confidence after months of internal turmoil.
Related: Ocean Protocol Exits AI Alliance as FET Slides 21% on Liquidity Shift
“The offer is simple: give my community back the tokens. I will drop every legal claim,” Sheikh said. He added that Fetch.ai would also cover the legal costs associated with returning the tokens to expedite the process.
Ocean Protocol Signals Willingness to Cooperate
Ocean Protocol, through GeoStaking, a validator node acting as a mediator, signaled that it would agree to return the tokens once Fetch.ai submits a formal written proposal.
Sheikh stated that the document could be ready as soon as Friday, raising hopes that both projects might soon settle.
The resolution would prevent a prolonged legal battle that could damage both organizations’ reputations and financial standing.
Background of the Dispute
Notably, the conflict began after blockchain data from analytics platform Bubblemaps revealed that a wallet linked to Ocean Protocol converted approximately 661 million Ocean tokens into 286 million FET tokens, valued at around $120 million at the time of the transaction.
The data also indicated that 160 million FET tokens were transferred to Binance, while 109 million were sent to GSR Markets. This sparked accusations from Fetch.ai that Ocean Protocol had misused funds related to the merger.
In response, Ocean Protocol denied all allegations of misappropriation, maintaining that the transactions were legitimate and unrelated to the token’s sharp price decline.
The foundation also withdrew from the Artificial Superintelligence Alliance on October 9, without directly addressing the token movements in its announcement.
FET Price Drops Over 93% Since Merger
Since the ASI merger was announced in March 2024, the FET token has lost more than 93% of its value. The token dropped from a peak of $3.22 to about $0.26 at the time of writing, representing an 80% decline over the past year.
Ocean Protocol founder Bruce Pon attributed the decline not to Ocean’s actions but to a combination of factors, including broader market volatility and liquidity issues.
In a Thursday blog post, Pon accused Fetch.ai and SingularityNET of draining liquidity by selling roughly $500 million worth of FET tokens. He also blamed a failed “TRNR” deal that coincided with a wider 45% crypto market downturn.
“Ocean decided that it could not in good conscience remain a part of the ASI Alliance,” Pon said.
Related: AI Crypto Hype Train? Fetch.ai (FET) Shows Signs of a Price Reversal
Ultimately, if Ocean Protocol returns the tokens and Fetch.ai follows through on its offer to withdraw legal claims, the agreement could mark the end of a months-long feud that has divided the ASI community.
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