Dispute Resolution Proposal
The Fetch.ai project and the Ocean Protocol Foundation are now on the path to resolving the dispute over 286 million FET tokens worth about $120 million. This proposal would conclude a flare-up of tensions between the blockchain projects, while avoiding time-consuming legal proceedings that would damage the reputation of both projects.
While attending a public chat on social media platform X on Thursday, Fetch.ai CEO Humayun Sheikh proposed a simple solution. He stated that, prior to the merger, they will drop all legal claims if Ocean Protocol returns the tokens they allegedly sold as part of the merger. Sheikh reiterated how simple his offer is, adding that the community deserves the tokens back in return for dropping every legal claim against the foundation.
The CEO committed to paying for any legal fees related to the current contract to help recover the tokens. Ocean Protocol seems open to the offer as soon as things are made official, GeoStaking, the validator node that helped facilitate things, said. According to Sheikh, the official offer could be prepared and submitted by as early as Friday, which is pretty quick to resolve the issue.
Background of the Controversy
The dispute arose after blockchain analysis showed that a wallet linked to Ocean Protocol had swapped out 661 million Ocean tokens for 286 million FET tokens. Platform Bubblemaps tracked 160 million FET tokens moved to the Binance exchange, and 109 million FET tokens moved to trading firm GSR Markets. Ocean Protocol exited the Artificial Superintelligence Alliance on October 9, issuing an announcement that did not mention those token transactions.
The FET token price has fallen 93% since the establishment of the ASI Alliance in March of 2024, from its peak price of $3.22. Ocean Protocol founder Bruce Pon does not believe he should be blamed for the price drop, arguing it was caused by more significant market factors and liquidity. Pon indicated that general market volatility and the sale of large amounts of tokens by other alliance members were more responsible for the price collapse.
Pon promised a comprehensive response dealing with all of the accusations while still emphasizing that Ocean Protocol made the ethical business decision to leave the partnership.