The conflict between Fetch.ai and the Ocean Protocol Foundation seems to be nearing a resolution as both parties aim to avoid escalating their disputes into a legal confrontation.
On Thursday, Fetch.ai announced it would withdraw all legal claims against Ocean Protocol if the latter agrees to return the 286 million FET tokens purportedly sold during their merger.
“They are expecting a legal proposal from us for the return of the tokens,” said Humayun Sheikh, the CEO of Fetch.ai, during an early X Spaces show. He added:
“You can have my letter tomorrow. The offer is simple: give my community back the tokens. I will drop every legal claim.”
(Translation: You can have my letter tomorrow. The offer is simple: return the tokens to my community, and I will withdraw all legal claims.)
Sheik also mentioned he would cover the legal expenses tied to finalizing the return of the tokens.
A representative from FET-based validator node GeoStaking, which facilitated the discussions, stated that Ocean Protocol would likely accede to the return of the tokens once a formal proposal is documented. Furthermore, they indicated that an offer could be drafted as soon as Friday.
This settlement could help both parties clear up misunderstandings without the prolonged legal battles that might jeopardize their reputations and finances.
This proposal comes after Sheikh recently made headlines by offering a $250,000 bounty for information on signatories of OceanDAO’s multisignature wallets and their ties to Ocean Protocol.
Despite the ongoing allegations, Ocean Protocol disputes claims of misappropriation. Blockchain analytics reveal that an Ocean Protocol-linked multisignature wallet exchanged approximately 661 million Ocean tokens for 286 million FET coins, valued at around $120 million during that time.
This included 160 million FET tokens sent to Binance and another 109 million to GSR Markets.
As of October 9, Ocean Protocol has distanced itself from the Artificial Superintelligence Alliance, with no mention of any token transfers. Since the announcement of this merger in March 2024, the FET token has witnessed over a 93% decline from a high of $3.22 to about $0.26 at present.
Bruce Pon, founder of Ocean Protocol, contended that this decrease was not due to Ocean Protocol’s departure from the merger. He remarked in a recent blog:
"[The 93% drop] was due to broader market sentiment and volatility…"
(Translation: The 93% drop was a result of widespread market sentiment and volatility.)
Ocean Protocol has committed to issuing a detailed rebuttal to the allegations, addressing each claim individually.
