Crypto Partnership Instability Exposed in $120M AI Collaboration Agreement

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Crypto Partnership Instability Exposed in $120M AI Collaboration Agreement

Bitget-RWA2025/10/24 12:32

By:Bitget-RWA

- Ocean Protocol and Fetch.ai settled a $120M dispute by returning 286M FET tokens, avoiding prolonged litigation and refocusing on decentralized AI/Web3 projects. - The 2024 ASI Alliance merger triggered accusations over token liquidity, with Ocean converting OCEAN to FET and transferring 286M tokens to exchanges. - FET's 93% price drop since the merger highlighted governance flaws, prompting Ocean to exit the alliance and Fetch.ai to prioritize community protection. - The settlement includes legal cost c

Ocean Protocol and Fetch.ai Reach $120 Million Settlement

After a heated legal dispute, Ocean Protocol and Fetch.ai have come to terms, agreeing to return $120 million in

FET

tokens. This agreement prevents a lengthy legal confrontation and enables both organizations to shift their attention back to advancing decentralized AI and Web3 projects. Multiple sources, such as

a Coinpedia report

, have verified the settlement, which follows several months of public disagreements over token handling and liquidity, culminating in Fetch.ai CEO Humayun Sheikh threatening legal proceedings. As outlined in the deal, Ocean Protocol will transfer 286 million FET tokens—currently valued at about $120 million—back to Fetch.ai, which in turn will withdraw all outstanding legal claims,

Cointelegraph

reported.

Crypto Partnership Instability Exposed in $120M AI Collaboration Agreement image 0

The conflict originated from the 2024 merger between Ocean Protocol, Fetch.ai, and SingularityNET, forming the Artificial Superintelligence (ASI) Alliance—a group dedicated to integrating AI-powered blockchain initiatives under a unified token system,

Coinpedia

reported. According to blockchain analytics firm

Bubblemaps

, Ocean Protocol’s multisig wallet swapped 661 million OCEAN tokens for 286 million FET, with 160 million FET later sent to Binance and 109 million to OTC provider GSR Markets,

TradingView

reported. Sheikh claimed this was a secret sale of FET tokens that disrupted the market and negatively impacted holders. Ocean Protocol refuted these accusations, labeling them as baseless and attributing FET’s 93% price drop since the merger to overall market instability and liquidity issues from other alliance members, Cointelegraph reported.

This agreement represents a significant shift for both entities. Fetch.ai’s CEO highlighted that the deal prioritizes “community protection,” while Ocean Protocol’s founder, Bruce Pon, described leaving the ASI Alliance as essential for maintaining ethical standards. “Ocean could not remain part of the ASI Alliance in good conscience,” Pon remarked, promising to release a detailed response to the recent claims, Cointelegraph reported. The settlement also stipulates that Sheikh will pay the legal fees related to token recovery, which should speed up the process, according to Coinpedia.

The dispute had already caused considerable market turbulence. FET’s value dropped sharply from $3.22 to $0.26, with experts attributing the fall to diminishing confidence in decentralized governance,

a CoinSpot analysis

found. Ocean Protocol’s exit from the ASI Alliance in October 2025 further fueled uncertainty, though the project has since initiated a buyback plan and is working to get relisted on major exchanges to restore liquidity,

Bitcoin Protocol

reported.

Now that the conflict is resolved, both organizations are looking to refocus on technological progress. Fetch.ai and Ocean Protocol have expressed intentions to renew their partnership in decentralized AI, though the future of the ASI Alliance is still unclear. This episode highlights how fragile crypto collaborations can be, emphasizing the importance of transparency and sound governance to maintain trust among stakeholders,

Bitcoin

Protocol observed.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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