Fetch Labs Sues Ocean Protocol Over 263M FET Token Sale
Fetch Labs and Fetch.ai token holders have filed a class-action lawsuit (Case No. 1:25-cv-9210) in the U.S. Southern District of New York against Ocean Protocol Foundation, Ocean Expeditions, OceanDAO and founders Bruce Pon, Trent McConaghy and Christina Pon. Plaintiffs claim Ocean Protocol converted 661 million OCEAN tokens into 286 million FET tokens on July 1, then sold over 263 million FET into Binance and OTC desks without community notice. The mass FET token sale, exceeding 10% of circulating supply, triggered significant price pressure and raised governance concerns. Fetch.ai CEO has called for transparency over the conversions and control of the OceanDAO SAFE wallet. Traders should monitor FET price volatility, legal developments and any DAO governance updates for potential market impacts.
Bearish
The large-scale FET token sale exceeding 10% of circulating supply and the ensuing class-action lawsuit introduce immediate selling pressure and heighten legal and governance risks. In the short term, this is likely to increase volatility and push FET prices lower as traders react to potential token dumps and uncertain token management. Over the long term, prolonged governance disputes and multi-jurisdictional scrutiny could dampen investor confidence and limit upside potential until clarity and stronger transparency measures are implemented.