Michaela
Fetch.ai CEO Humayun Sheikh has publicly accused the Ocean Protocol Foundation of mismanaging 286 million FET tokens valued at about $84 million, a dispute that has sparked legal threats and drawn a response from cryptocurrency exchange Binance.
Key points:
- Fetch.ai CEO Humayun Sheikh accused Ocean Protocol of mishandling $84M worth of FET tokens, alleging undisclosed transfers ahead of the ASI merger.
- Ocean Protocol denied the claims, calling them baseless and saying Sheikh rejected an offer to release confidential adjudication findings.
- Binance announced it will halt Ocean deposits on October 20 as tensions between the projects continue to rise.
The dispute traces back to the formation of the Artificial Superintelligence (ASI) Alliance in 2024, an initiative that unified three leading AI-driven blockchain projects, Fetch.ai, Ocean Protocol, and SingularityNET, under a single token structure aimed at advancing decentralized artificial intelligence collaboration.
In an X post published on October 15, Sheikh alleged that Ocean Protocol minted and transferred more than 700 million OCEAN tokens in 2023 prior to the ASI merger. He claimed the tokens were later converted into FET and moved in large quantities to centralized exchanges and market-making firms without transparent disclosure, actions he characterized as equivalent to a “rug pull.”
A “rug pull” refers to a type of crypto scam in which developers suddenly withdraw funds or assets from a project, leaving investors with worthless tokens and significant financial losses.
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In a follow-up post on X, Sheikh announced plans to personally finance class-action lawsuits across at least three jurisdictions on behalf of current and former FET token holders. He added that a dedicated channel would soon be established to allow affected individuals to submit their claims.
As tensions between the projects intensify, Binance announced it will discontinue support for Ocean deposits starting October 20. The exchange clarified that while users can continue depositing through other supported networks, any ERC-20 deposits made after that date will not be credited, warning that such transactions could result in the permanent loss of assets.
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Ocean Protocol has publicly denied the accusations, dismissing them as baseless rumors circulating within the community. “We are refraining from engaging in unfounded claims and harmful rumours that make the situation worse for the entire ASI and Ocean communities,” Ocean Protocl wrote.
Ocean Protocol stated that it had previously proposed lifting confidentiality on the adjudicator’s recent findings to provide full transparency to the community. However, according to the foundation, Humayun Sheikh declined the offer.
As the dispute unfolds, both communities are watching closely to see how the conflict could impact the future of the ASI Alliance and its shared vision for decentralized artificial intelligence.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
