Ocean Protocol Foundation has rejected accusations of token theft following its departure from the ASI Alliance, asserting that community tokens remain under the control of Ocean Expeditions, an independent legal trust. The dispute with former alliance partners Fetch.ai and SingularityNET has escalated into public accusations, legal threats, and market turmoil that has sent both projects' token values plummeting more than 85% from their peaks.
What to Know:
- Ocean Protocol converted 661 million OCEAN tokens to 286 million FET tokens before leaving the ASI Alliance, with 270 million FET subsequently moved to centralized exchanges
- Fetch.ai CEO Humayun Sheikh offered a $250,000 bounty to identify OceanDAO multisig wallet signers and accused Ocean of selling over $100 million in community tokens
- Both FET and OCEAN tokens have experienced severe price declines, dropping 92% and 87% respectively from their highs amid the governance conflict
Alliance Breakdown Triggers Public Feud
The rift between Ocean Protocol Foundation and the ASI Alliance began when Ocean announced its exit from the partnership that also included Fetch.ai and SingularityNET. Ocean maintains that community tokens are managed by Ocean Expeditions, a Cayman Islands legal trust established in June 2025 as an independent entity.
Fetch.ai CEO Humayun Sheikh challenged that narrative.
He accused Ocean Protocol of misusing alliance funds and liquidating over $100 million in community tokens before withdrawing from the partnership.
"I did not make it personal, my only questions are related to community tokens which I feel have been taken unethically and unlawfully," Sheikh wrote on X, formerly Twitter, in an October 23 post directed at Ocean Protocol co-founder Bruce Pon.
On-chain data compiled by Bubblemaps shows 661 million OCEAN tokens were swapped for 286 million FET tokens ahead of a planned merger between the alliance partners. Subsequently, 270 million FET tokens moved to centralized exchanges. By July 2024, the majority of OCEAN's supply had been converted to FET, though approximately 270 million OCEAN tokens remain distributed across more than 37,000 individual wallets.
Ocean Protocol Foundation dismissed Sheikh's claims as "false, misleading, and libelous." The foundation stated that neither OceanDAO nor Ocean Expeditions signed the ASI Alliance Token Merger Agreement, which means Ocean Expeditions holds no legal obligations to the alliance or its merger framework. The entity exists solely to manage the community treasury for community benefit, according to the foundation's statement.
Financial Fallout and Market Response
The dissolution triggered sharp market declines for both projects. FET fell 92% from its March highs, while OCEAN dropped 87% from its peak value. The price movements intensified scrutiny of governance practices across all alliance partners.
Sheikh raised the stakes by offering a $250,000 bounty to reveal the identities of OceanDAO multisig wallet signers.
The move signals potential litigation across multiple jurisdictions. He argued that converting community tokens before completing the merger violated the alliance's core principles.
Binance's decision to halt OCEAN deposits coincided with the alliance dispute and token movements, amplifying investor concerns about the project's stability.
Ocean Protocol's leadership described the public accusations as damaging to all parties' reputations and creating unnecessary confusion in the market.
The foundation countered that Fetch.ai has not fulfilled its own obligations under the Token Merger Agreement. "The OPF asserts that Ocean Expeditions has no legal obligations to the ASI Alliance, while Fetch.ai is still required by the Token Merger Agreement to inject 110.9 million $FET into the OCEAN:FET bridge contract—a requirement reportedly not yet fulfilled," the foundation stated.
Ocean Protocol defended its exit on X as exercising its "right to chart a separate course" and protect "sovereign property ownership." The foundation emphasized its commitment to transparency and decentralization throughout the dispute.
Understanding the Key Terms
The conflict centers on token conversion mechanisms and multisig wallets, which are cryptocurrency accounts requiring multiple signatures to authorize transactions. A bridge contract facilitates the exchange of one cryptocurrency for another, in this case allowing OCEAN tokens to be swapped for FET tokens at predetermined rates. The ASI Alliance had planned a token merger where multiple projects would consolidate their separate tokens into a unified token structure.
Rebuilding Efforts and Uncertain Future
Ocean Protocol's reputation faces scrutiny from critics who characterize its exit as opportunistic. Some community members on X called the project's actions a long-running scheme. Others view the departure as an attempt to reclaim the project's independent identity after being subsumed into a larger alliance structure.
The foundation announced plans to buy back and burn OCEAN tokens using project profits to address declining valuations and restore investor confidence. It has approached exchanges about relisting the token.
These measures aim to refocus Ocean on decentralized data infrastructure rather than the artificial general intelligence economy narrative promoted by its former partners.
Unresolved questions about the OCEAN:FET bridge and competing public allegations continue to affect both Ocean Protocol and the remaining ASI Alliance members. How the parties resolve these disputes could establish precedents for governance in cryptocurrency coalitions and decentralized autonomous organizations.
Closing Thoughts
The conflict between Ocean Protocol and the ASI Alliance represents a significant test of governance structures in decentralized projects. Investors are monitoring how both sides navigate legal threats and market pressures. The outcome may influence how future blockchain partnerships structure agreements and manage community assets when alliances dissolve.