Ondo Finance’s Future in Question as Rival Factions Clash After Founder’s Passing

A leadership dispute has erupted at tokenized real-world asset issuer Ondo Finance following the death of founder Nathan Allman, with his estate accusing CEO Ian De Bode of attempting to take control of the company improperly while ownership voting rights were temporarily unresolved during probate.

The estate has filed three cases with the Delaware Chancery Court seeking a decision on who has legal control of Ondo Finance. It is also asking the court to block major corporate actions until the governance conflict is settled.

The dispute centers on the events that occurred immediately after Allman’s death in May.

According to the estate’s complaint, Allman died while serving as Ondo’s CEO, sole director, and controlling shareholder. Following his passing, his voting rights became part of his estate but remained inactive until his mother, Kathleen Allman, was formally appointed as personal representative through Hawaii probate proceedings on June 26.

The publicly available court documents do not reveal the size of Allman’s voting stake or the cause of his death.

The estate alleges that before the probate process was completed, De Bode claimed he automatically assumed the CEO role under Ondo’s bylaws. The complaint further claims he appointed himself as the company’s sole director through a voting agreement and moved ahead with several corporate decisions, including hiring external advisors, approving performance-based grants, and attempting to add another director.

The estate argues those actions were invalid because Ondo’s bylaws required the board to approve any appointment to fill the vacant CEO position.

After gaining authority to represent the estate’s shares, Kathleen Allman initially attempted to work with De Bode on a smooth transition rather than immediately removing him, according to court filings.

De Bode has denied the allegations, saying the lawsuit is damaging to the company and its stakeholders. In comments to CoinDesk, he said the board had made efforts to cooperate with the Allman estate and argued that the claims against him lack legal basis.

He added that Ondo continues to receive support from key stakeholders, including major investors and the Ondo Foundation, while the current leadership remains committed to advancing Nathan Allman’s goal of creating a more open and accessible financial ecosystem.

The estate claims Kathleen Allman later took a seat on the board, introduced temporary governance measures to allow normal business operations to continue, confirmed De Bode’s role as president, and requested essential corporate information such as a shareholder list.

However, the filings allege that those efforts failed after De Bode and the company’s outside counsel refused to recognize her authority or provide the requested records.

The estate then expanded the board, appointed additional directors, and during a July 24 board meeting voted to remove De Bode from all company positions. Kathleen Allman was subsequently appointed board chair and interim CEO.

The filings describe her leadership role as temporary, stating that her priority is to stabilize the company, ensure uninterrupted operations, and allow the board to search for Nathan Allman’s long-term successor.

The estate has requested an expedited court review, arguing that uncertainty over Ondo’s leadership could affect important business matters, including contracts, company spending, equity issuance, and other corporate decisions.

The Delaware court has not yet ruled on the matter, and the allegations in the filings represent only the estate’s claims.

In a separate statement, Ondo’s board said it remains committed to Nathan Allman’s belief that blockchain-powered markets are the future of finance. The board said it is focused on supporting the community, maintaining the company’s momentum, and identifying a successor to continue the founder’s vision.

The company also recently appointed former Blockchain.com executive Adam Schlisman as its new chief financial officer.