Fetch.ai CEO Alleges Ocean Protocol May Have Mismanaged FET Tokens, Pledges Funding for Class-Action Suits

• Allegation: Undisclosed OCEAN-to-FET conversions and large token movements

• Binance announced it will stop crediting ERC‑20 OCEAN deposits after Oct. 20, 2025, signaling exchange-level risk controls.

• Data cited: 719 million OCEAN minted in 2023; 661 million swapped for ~286 million FET in July 2025 (claims by Fetch.ai).

Fetch.ai Ocean Protocol dispute: CEO alleges OCEAN-to-FET conversions and undisclosed transfers; Binance limits ERC-20 deposits. Read timeline, data, and legal responses.

Publication: Oct. 16, 2025. Updated: Oct. 16, 2025. Author/Organization: COINOTAG

What is the Fetch.ai and Ocean Protocol token dispute?

Fetch.ai Ocean Protocol dispute refers to claims by Fetch.ai CEO Humayun Sheikh that Ocean Protocol minted and later converted large quantities of OCEAN tokens into FET tokens without proper disclosure, then moved substantial sums to centralized exchanges and market makers. The allegations center on roughly 719 million OCEAN minted in 2023 and about 286 million FET resulting from a July 2025 swap.

The controversy traces to the 2024 ASI Alliance merger between Fetch.ai, Ocean Protocol and SingularityNET, which established shared token mechanics across the projects. Sheikh has characterized certain transfers as improper and has pledged to fund litigation to establish facts and seek redress.

Source: Humayun Sheikh

How did the alleged token transfers and conversions occur?

According to public statements by Fetch.ai CEO Humayun Sheikh, Ocean Protocol minted 719 million OCEAN in 2023. Of those, Sheikh alleges 661 million OCEAN were swapped in July 2025, producing about 286 million FET. Sheikh asserts that portions of those FET were then transferred to centralized exchanges and market-making firms and, in some cases, liquidated.

Sheikh wrote on X that “If Ocean as a stand-alone project did this, it would be classed as a rug pull.” Ocean Protocol has denied the allegations, calling them “unfounded claims and harmful rumors” and stating its treasury remains intact. Ocean also said it proposed waiving confidentiality around an adjudicator’s findings; Fetch.ai, Sheikh claims, refused that proposal. The mention of an adjudicator indicates arbitration under the ASI Alliance merger framework is underway.

Frequently Asked Questions

Are FET tokenholders at risk of losing assets due to the alleged Ocean Protocol transfers?

Risk depends on custodial arrangements and exchange policies. Binance warned that ERC‑20 OCEAN deposits after Oct. 20, 2025, may not be credited and could be lost, which raises counterparty and deposit risk for users who hold or move OCEAN on affected networks. Tokenholders should review exchange notices and preserve on‑chain evidence.

Why did Binance restrict ERC-20 OCEAN deposits?

Binance announced it will cease supporting Ocean (ERC‑20) deposits after Oct. 20, 2025, warning such deposits may not be credited. The exchange did not cite the dispute directly, but the timing and network focus suggest internal risk controls or investigations related to disputed token origin and movement on Ethereum.

Timeline and factual summary

• 2023: Fetch.ai alleges 719 million OCEAN were minted.
• July 2025: 661 million OCEAN allegedly swapped for ~286 million FET as part of ASI Alliance conversion mechanics.
• Oct 2025: Public accusations by Humayun Sheikh; Binance announces ERC‑20 OCEAN deposit restrictions effective Oct. 20, 2025; Ocean Protocol issues public denial and references an adjudicator process.

Authorities and market participants named in statements: Binance, trade firms such as GSR and ExaGroup (mentioned by Sheikh), and the ASI Alliance’s adjudicator mechanism. Official on‑chain transaction data and public posts by involved parties form the primary factual record cited by all sides.

Source: Ocean Protocol

Legal actions and responses

Humayun Sheikh has pledged to fund class-action lawsuits in three or more jurisdictions and to set up a channel for FET holders to submit evidence. Ocean Protocol has rejected the allegations, stated it is preparing responses, and indicated willingness to engage with adjudication findings subject to confidentiality considerations.

Journalistic outreach: Cointelegraph reached out to Fetch.ai and Ocean Protocol for comment but had not received responses by publication. This report references public statements by the parties and on‑chain transaction records as reported by stakeholders.

Key Takeaways

• Allegations are specific: Clear numbers are cited—719M OCEAN minted; 661M swapped for ~286M FET—providing a definable scope for investigation.
• Exchanges are reacting: Binance’s restriction on ERC‑20 OCEAN deposits signals exchange-level risk management tied to disputed token flows.
• Legal arbitration is active: Parties reference an adjudicator and Sheikh has announced planned class-action funding; expect multi-jurisdictional legal activity and further on‑chain transparency requests.

Conclusion

The Fetch.ai Ocean Protocol dispute centers on contested token issuances and conversions within the ASI Alliance framework, with concrete on‑chain figures and rapid market responses such as Binance’s ERC‑20 deposit restrictions. COINOTAG will continue to track arbitration developments, legal filings, and on‑chain disclosures as they become available. Tokenholders should secure evidence and monitor official statements from the entities involved.