A significant dispute has emerged between Fetch.ai and Ocean Protocol Foundation, centering on allegations of unauthorized token sales and a high-stakes effort to prevent a full-blown legal battle. Both blockchain entities are now at a critical juncture, exploring a potential out-of-court settlement to resolve their differences.
A Path Towards Resolution
Fetch.ai has formally extended an olive branch, proposing to cancel all pending lawsuits against Ocean Protocol Foundation. This offer is contingent upon Ocean Protocol returning an alleged 286 million Fetch.ai (FET) tokens, which Fetch.ai claims were sold illicitly during their recent merger. Fetch.ai CEO Humayun Sheikh has publicly committed to withdrawing legal actions and even covering the associated legal costs if the tokens are repatriated to the community. In a positive development, Ocean Protocol, through its validator node GeoStaking, has indicated a willingness to accept this proposal, provided the offer is officially formalized in writing, signaling a mutual desire to avoid protracted and potentially damaging litigation.
The Core of the Controversy
At the heart of the conflict are accusations that a multi-signature wallet linked to Ocean Protocol converted approximately 661 million Ocean tokens into 286 million FET tokens, valued at around $120 million at the time, with significant portions reportedly transferred to major exchanges. While Ocean Protocol denies any wrongdoing, these claims are supported by blockchain data from platforms like Bubblemaps. The situation escalated following Ocean Protocol's withdrawal from the Artificial Superintelligence Alliance (ASI) in October, an exit that did not initially address the controversial token transfers. Ocean Protocol founder Bruce Pon, however, disputes that their departure caused the token's dramatic price decline, attributing it instead to broader market volatility, liquidity drains, and an "imprudent agreement." He has pledged to release a comprehensive rebuttal to the allegations.
