Fetch.ai Accuses Ocean Protocol in $84 Million Token Feud; Binance Cuts OCEAN Deposits

- Fetch.ai alleges Ocean Protocol mishandled $84 million in token transfers before ASI merger. - Binance restricts ERC-20 OCEAN token deposits starting October 20, 2025. On October 16, 2025, Cointelegraph reported a heated dispute between Fetch.ai and Ocean Protocol over allegations of undisclosed token activities, which has prompted legal action. Fetch.ai CEO Humayun Sheikh accused Ocean Protocol of improperly minting and transferring $84 million worth of OCEAN tokens, claiming this occurred before their merger to form the Artificial Superintelligence (ASI) Alliance. According to Sheikh, Ocean Protocol converted the tokens into FET, Fetch.ai’s native currency, without adequate transparency before the funds were moved to centralized exchanges and market-making entities. Sheikh stated that if Ocean Protocol had operated independently, these actions would resemble a “rug pull.” Amid the rising scrutiny, major cryptocurrency exchange Binance announced it will restrict deposits of the ERC-20 OCEAN token beginning October 20, 2025. Although Binance did not officially connect its decision to the feud, Sheikh suggested the move demonstrated the exchange’s support for his call to investigate Ocean Protocol’s token activity. Consequently, market observers view Binance's decision as a significant development in the conflict. Sheikh also committed to financing class-action lawsuits in multiple jurisdictions and urged token holders to provide evidence supporting Fetch.ai's accusations. Ocean Protocol, however, strongly refuted the claims, describing them as “baseless and damaging rumors.” The foundation maintained that its treasury is secure and disclosed that it had already initiated legal arbitration proceedings. In a notable twist, Ocean Protocol claimed it proposed lifting confidentiality on the adjudicator’s findings, an offer Sheikh allegedly rejected. This feud raises urgent concerns about governance, transparency, and market trust in the cryptocurrency sector, especially since Ocean Protocol’s exit from the ASI Alliance earlier in October had already fueled speculation about strained relations between the two entities. As of 15:08 UTC on October 16, the Artificial Superintelligence Alliance’s FET token was trading at $0.286, down 6.9% in the last 24 hours. Its fully diluted market capitalization stood at approximately $777.04 million, with a trading volume of $164.62 million.