tl;dr
Fetch.ai threatens to drop legal claims against Ocean Protocol if they return 286 million FET tokens ($74M), ending a months-long feud over alleged misappropriation during a merger. The proposed settlement, brokered by GeoStaking, could set a precedent for blockchain dispute resolution.
**Fetch.ai and Ocean Protocol Edge Toward Resolution as Legal Tensions Ease**
The long-standing feud between Fetch.ai and the Ocean Protocol Foundation appears to be nearing a resolution, as both parties explore a compromise to avoid a protracted legal battle. The dispute, centered around the alleged misappropriation of 286 million Fetch.ai (FET) tokens during a merger, has taken a pivotal turn after Fetch.ai announced it would drop all pending legal claims if Ocean Protocol returned the assets.
**Fetch.ai Offers Legal Reprieve in Exchange for Token Recovery**
Fetch.ai CEO Humayun Sheikh revealed during a Thursday X Spaces session that his team would cancel all legal actions against Ocean Protocol if the foundation returned the 286 million FET tokens, valued at approximately $74 million at the time of the transfer. “You can have my letter tomorrow. The offer is simple: give my community back the tokens. I will drop every legal claim,” Sheikh stated, emphasizing that Fetch.ai would also cover the legal costs associated with the agreement.
The proposal hinges on Ocean Protocol formally documenting the terms of the token return, a step brokered by FET-based validator node GeoStaking. Sheikh confirmed that the formal offer could be finalized as early as Friday, signaling a potential breakthrough in the months-long conflict.
**Context of the Token Dispute**
The tension stems from allegations that Ocean Protocol’s multisignature (multisig) wallet converted 661 million Ocean tokens into 286 million FET coins, worth roughly $120 million at the time, according to blockchain data platform Bubblemaps. The transaction included 160 million FET tokens sent to Binance and 109 million to GSR Markets. Ocean Protocol has denied any wrongdoing, but the transfer has fueled accusations of mismanagement.
The fallout coincided with Ocean Protocol’s withdrawal from the Artificial Superintelligence Alliance (ASI) on October 9, though the foundation did not link the move to the token transfers. Meanwhile, the FET token’s value has plummeted by over 93% since March 2024, dropping from $3.22 to $0.26. Ocean Protocol founder Bruce Pon attributed the decline to broader market volatility and liquidity drains from Fetch.ai and SingularityNet, rather than the alleged token swaps.
**Broader Implications and Ongoing Scrutiny**
Fetch.ai’s $250,000 reward offer for information on the signatories of Ocean DAO’s multisig wallet underscores the complexity of the dispute. A multisig wallet requires multiple approvals for transactions, making the identities of those involved a critical point of contention.
While Ocean Protocol has not publicly confirmed its willingness to return the tokens, the proposed agreement could mitigate reputational and financial harm for both entities. Sheikh highlighted that resolving the issue without litigation would “protect the interests of both parties and the broader community.”
Ocean Protocol’s Pon has promised a “claim-by-claim rebuttal” to the allegations, though details remain pending. As the two sides navigate this delicate negotiation, the outcome could set a precedent for resolving blockchain disputes through collaboration rather than confrontation.
For now, the prospect of a diplomatic exit from the feud offers a glimmer of hope for a sector often mired in legal and technical conflicts. Whether the formal agreement materializes remains to be seen, but the willingness to de-escalate suggests a shift toward prioritizing community trust over adversarial tactics.