Fetch.ai’s CEO, Humayun Sheikh, has announced a $250,000 reward for information regarding the signers of OceanDAO’s multisignature wallet. This announcement has reignited tensions with Ocean Protocol over alleged misuse of funds linked to their alliance ahead of the planned 2024 merger.
The conflict originates from token conversions executed prior to the establishment of the Artificial Superintelligence (ASI) Alliance, which unites Fetch.ai, Ocean Protocol, and SingularityNet.
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Ocean Protocol Accused of Pre-Merger Transfers
Sheikh’s $250,000 bounty is aimed at anyone who can link OceanDAO’s multisig wallet signers to the Ocean Protocol Foundation. This type of wallet requires multiple signatures for transaction authorization, serving as a common security measure for shared control.
On-chain analytics platform Bubblemaps reports that Ocean Protocol converted 661 million OCEAN into 286 million FET prior to the ASI merger. Blockchain data shows that 270 million FET were later sent to exchanges, including 160 million to Binance and 109 million to GSR Markets.
Sheikh contends that these conversions breached the alliance’s foundational spirit of trust. “Funds meant for the community have been misappropriated,” he stated on X, calling on Binance and GSR to investigate.
In response, Ocean Protocol has denied the claims, labeling them “unfounded,” and promises a formal reply.
Notably, Binance had already halted OCEAN deposits on October 15, shortly before Sheikh’s public declaration. While the exchange did not attribute its actions to the dispute, the timing led to speculation.
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Additionally, Sheikh has announced his intention to fund class-action lawsuits in several jurisdictions to hold Ocean Protocol accountable.
Legal Fallout and Market Implications
Experts suggest that this feud might alter investor confidence in AI-token alliances. Once valued at over $7 billion, the ASI merger aimed to unify decentralized AI development but now faces reputational challenges.
Sheikh’s bounty announcement may lead to more rigorous scrutiny of multisignature governance and token custody within crypto alliances. Legal actions could establish precedents for future blockchain projects that depend on consortiums, especially concerning asset conversions.
Ocean Protocol officially withdrew from the ASI alliance on October 9 but did not clarify the issues surrounding the contested token transactions. This rising conflict highlights the fragile trust within collaborative crypto ventures that lack transparent governance.
As of October 21, Fetch.ai’s native token FET was trading around $0.25, a 9% drop over the last 24 hours amid increased market volatility and community concerns. FET reached its all-time high of $3.45 in late March 2024, indicating a decline of nearly 92% from that peak.
Ocean Protocol’s native token OCEAN also saw a 4% decrease from the previous day, trading around $0.25. Its all-time high was $1.93 in mid-April 2021, meaning the current price is approximately 87% lower than that peak.
