Ocean Vs. Fetch.ai Turns Ugly: Inside The $84M Asi Token Scandal Tearing Crypto’s Ai Giants Apart

What Happened

Additionally, the dispute raises questions about governance within the ASI Alliance, leaving holders unsure about the future structure and security of their assets.

The fallout started earlier this month after Ocean announced its complete withdrawal from the ASI Alliance earlier this month.

Sheikh described the move as a “rug pull” if done by a stand-alone project and called on Binance and other firms to investigate the transactions.

As the dispute intensified, Binance announced on Wednesday that it would stop supporting Ocean deposits via the Ethereum network starting October 20.

Market Context

He claimed large portions of these tokens were transferred to centralized exchanges and trading firms such as GSR Markets and ExaGroup without proper disclosure.

Why It Matters

A high-stakes feud has erupted between Fetch.ai CEO Humayun Sheikh and the Ocean Protocol Foundation, threatening to dismantle one of crypto’s most ambitious AI collaborations, the Artificial Superintelligence (ASI) Alliance.

The conflict, which centers on about 286 million Fetch.ai (FET) tokens worth roughly $84 million, has spiraled into on-chain accusations, legal threats, and an unexpected reaction from Binance.

The exchange warned users that ERC-20 OCEAN deposits made after that date “will not be credited and may lead to asset loss.”

While Binance did not mention the feud directly, the timing and network restriction raised speculation that the platform was responding to risks linked to the disputed tokens.

Details

Ocean Quits ASI Alliance: What Is Happening?

The ASI Alliance was formed in 2024 to unite three leading AI-focused blockchain projects, Fetch.ai, Ocean Protocol, and SingularityNET, under a single token framework.

The foundation said it was resigning all director and membership roles from the Singapore-based Superintelligence Alliance Ltd., marking the end of its collaboration with Fetch.ai and SingularityNET.

While the foundation cited legal constraints preventing it from revealing full details, Ocean hinted at deeper conflicts. “We are, however, constrained from sharing the truth and facts at the moment,” the statement read. “Please stand by while the process works its way through, and as soon as we can share more, we will.”

However, tensions escalated when Sheikh accused Ocean Protocol of secretly minting and converting millions of tokens before the merger.

The Accusation: Ocean Protocol Hit with “Rug Pull” Allegations as Fetch.ai CEO Exposes Secret Token Conversions

In a detailed post on X, Sheikh alleged that Ocean minted 719 million OCEAN tokens in 2023, later converting 661 million of them into 286 million FET tokens in July 2025.

Blockchain data cited by Sheikh shows that, between July 3 and July 14, 2025, more than 76 million FET tokens were moved to specific wallets, including 21 million sent to Binance and over 55 million to a GSR-linked address.

Another 13.5 million FET were allegedly transferred to an account funded by ExaGroup, with nearly 200 million remaining tokens later distributed to multiple Gnosis Safe wallets in August.

Sheikh claimed most of those funds have since been sent to Binance.

Sheikh said Binance’s move reflected the exchange “listening” to community concerns about Ocean’s transfers.

Following the exit, Sheikh pledged to personally fund class-action lawsuits in at least three jurisdictions and urged affected FET holders to gather evidence of financial losses.

He also accused Ocean of converting community reward tokens before the departure and demanded public disclosure of wallet signatories linked to the OceanDAO and Ocean Expedition entities.

Ocean Protocol Denies $84M Token Misuse Allegations: Lawsuits Incoming

In a statement posted on X, the foundation affirmed that its treasury “remains intact” and confirmed that the dispute has entered formal arbitration under the ASI merger framework.