A feud between Fetch.ai CEO Humayun Sheikh and the Ocean Protocol Basis has escalated into authorized threats, onchain accusations, and a response from Binance, all centering on about 286 million Fetch.ai (FET) tokens value roughly $84 million.
The battle stems from the Artificial Superintelligence (ASI) Alliance, a 2024 merger that mixed AI-focused crypto tasks Fetch.ai, Ocean Protocol and SingularityNET beneath a shared token framework.
On Wednesday, Sheikh alleged that Ocean Protocol minted and transferred tens of millions of OCEAN tokens earlier than the merger. He mentioned the challenge later transformed them into FET and moved massive sums to centralized exchanges and market-making companies with out correct disclosure.
“If Ocean as a stand-alone challenge did this, it might be classed as a rug pull,” Sheikh wrote on X, detailing how 719 million OCEAN have been minted in 2023, with 661 million swapped for 286 million FET in July 2025. He alleged that parts of those tokens have been subsequently moved or liquidated.
Binance restricted assist for OCEAN tokens
Amid the escalating dispute, crypto trade Binance announced that it’ll stop assist for Ocean deposits beginning subsequent Monday, Oct. 20.
Whereas the trade mentioned customers can nonetheless deposit utilizing different supported networks, it mentioned ERC-20 deposits made after Oct. 20 “won’t be credited and should result in asset loss.”
Although the trade didn’t point out the dispute because the trigger for the transfer, limiting ERC-20 deposits means that the trade is conducting inside danger controls or investigations, as lots of the disputed tokens are on Ethereum.
Sheikh interpreted Binance’s determination to stop assist for the tokens because the trade “listening” to his public calls on X to analyze Ocean Protocol’s token transfers.
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Sheikh pledges class-action lawsuits, Ocean Protocol responds
Sheikh pledged to fund class-action lawsuits throughout three or extra jurisdictions and known as on Binance, GSR and ExaGroup to analyze. He additionally known as on FET tokenholders to arrange proof in opposition to Ocean Protocol, as he mentioned he would arrange a channel for them to submit their claims.
Ocean Protocol responded on X, denying the allegations outright and describing them as “unfounded claims and dangerous rumors.”
In an official assertion on X, the corporate mentioned its treasury was intact and that it had instructed waiving confidentiality over an adjudicator’s findings associated to the dispute. Ocean claimed Sheikh refused this proposal.
“Ocean is working and energetic,” the submit mentioned. “We’re getting ready responses to the assorted unfounded claims and allegations whereas respecting the ambits of the legislation.”
The point out of an adjudicator means that the battle has already reached a proper authorized arbitration, seemingly beneath the merger framework that ruled the ASI Alliance’s token conversions.
Cointelegraph reached out to Fetch.ai and Ocean Protocol, however had not acquired a response by publication.
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