Ocean Protocol Foundation has strongly denied allegations of token theft, claiming that all community tokens remain with Ocean Expeditions.

The ongoing conflict highlights serious governance challenges in cryptocurrency alliances and raises questions about trust and transparency.

Tensions Rise After ASI Alliance Split

Ocean Protocol Foundation’s exit from the ASI Alliance, which included Fetch.ai and SingularityNET, ignited a bitter public dispute.

However, the Foundation maintains that Ocean community tokens are under the stewardship of Ocean Expeditions, a Cayman Islands legal trust established independently in June 2025.

This position stands in direct contrast to public statements by Fetch.ai CEO Humayun Sheikh. The crypto executive accused Ocean Protocol of misusing alliance funds and selling over $100 million in community tokens before leaving the alliance.

On-chain analysis by Bubblemaps indicates that 661 million OCEAN tokens were converted to 286 million FET prior to the planned merger. Meanwhile, 270 million FET were moved to centralized exchanges.

By July 2024, most of the OCEAN supply had been swapped for FET, although about 270 million OCEAN tokens remain spread across more than 37,000 wallets.

These movements, along with Ocean Protocol’s abrupt withdrawal, fueled allegations that the project “exploited the alliance for visibility,” as described in a BeInCrypto analysis.

The dissolution also triggered significant market volatility. FET declined 92% from March highs, while OCEAN fell 87% from its peak.

FET/USDT and OCEAN/USDT Price Performance. Source: TradingView

These price swings increased scrutiny on governance and transparency across all partner projects.

Competing Allegations and Legal Threats

The dispute turned legal when Sheikh offered a $250,000 bounty to reveal OceanDAO multisig wallet signers, raising the stakes toward potential litigation across several jurisdictions.

He argues that the conversion of community tokens before the merger violated the alliance’s intended spirit. Binance’s recent move to halt OCEAN deposits, along with the alliance token sell-off, appeared to coincide with these events, heightening investor anxiety.

Ocean Protocol Foundation described Sheikh’s statements as “false, misleading, and libelous.” The Foundation insists that neither OceanDAO nor Ocean Expeditions signed the ASI Alliance Token Merger Agreement.

Ocean Expeditions, as an independent entity, holds the community treasury solely for community benefit and has no legal obligations to the alliance or the merger framework.

“The OPF asserts that Ocean Expeditions has no legal obligations to the ASI Alliance, while Fetch.ai is still required by the Token Merger Agreement to inject 110.9 million $FET into the OCEAN:FET bridge contract—a requirement reportedly not yet fulfilled,” Ocean Protocol Foundation explained.

Ocean Protocol’s leadership believes these public allegations generate confusion and reputational risk for all parties.

On X, Ocean emphasized its commitment to transparency and decentralization, describing its actions as a “right to chart a separate course” and defend “sovereign property ownership.”

Governance, Reputation, and Recovery Efforts

The repercussions of the breakup extend beyond accusations and lawsuits. Ocean Protocol’s reputation is under scrutiny as critics call its exit opportunistic.

Meanwhile, others see it as an attempt to restore its identity. To address declining token values and reassure investors, the Foundation announced plans to buy back and burn $OCEAN tokens with project profits. It has invited exchanges to relist the token.

These steps aim to strengthen Ocean’s focus on decentralized data infrastructure and to separate from broader AGI economy narratives favored by former partners.

Unresolved obligations regarding the OCEAN: FET bridge and the fallout from public accusations continue to affect both Ocean Protocol and the ASI Alliance.

How these matters are settled could set important precedents for crypto coalitions and decentralized governance. Investors now await the next steps as the two sides compete to shape the sector’s future direction.