The uneasy alliance between Fetch.ai, Ocean Protocol, and SingularityNET – formed last year to create a unified AI token economy under the Artificial Superintelligence (ASI) banner – has descended into open conflict.
What began as a technical merger has turned into a legal and reputational battle involving more than $80 million worth of tokens, allegations of secret minting, and even a reaction from Binance, the world’s largest crypto exchange.
The spark came from Humayun Sheikh, the CEO of Fetch.ai, who accused Ocean Protocol of creating and selling millions of tokens ahead of the merger. According to Sheikh, Ocean quietly minted hundreds of millions of OCEAN tokens in 2023, later swapping them for Fetch.ai’s FET after the alliance was finalized.
He claims the tokens were then moved to centralized exchanges and market-making firms without public disclosure – behavior he likened to a “rug pull.” Sheikh has since pledged to fund class-action lawsuits across multiple jurisdictions and urged tokenholders to submit on-chain evidence to back his case.
As the accusations gained traction online, Binance announced it would stop accepting OCEAN ERC-20 deposits starting October 20, warning that any transfers after that date might not be credited. The company didn’t mention the dispute by name, but the timing raised eyebrows across the industry.
Sheikh interpreted the move as a quiet endorsement of his concerns, suggesting the exchange was responding to his repeated calls on social media to freeze or review suspicious transactions tied to Ocean.
Ocean Protocol has forcefully denied any wrongdoing. In a series of statements, the foundation called the allegations “baseless” and confirmed that its treasury remains “secure and operational.” It added that the matter is already under the review of an independent adjudicator, whose findings could clarify the extent of the disagreement once confidentiality restrictions are lifted.
The foundation also claimed Sheikh rejected a proposal to publish those findings publicly – a point that may become central to any potential legal proceedings.
The feud now threatens to dismantle one of the most ambitious collaborations in the AI-crypto world. The ASI Alliance was envisioned as a unified network merging decentralized AI computing, data-sharing, and token liquidity – a project meant to rival centralized tech giants in the race toward artificial general intelligence.
Instead, it now stands as a cautionary tale. What was supposed to be the birth of a new AI-powered crypto ecosystem has turned into a high-stakes courtroom drama – and a reminder that even in the decentralized future, old-fashioned trust still matters most.
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