Ondo Finance founder's mother sues to seize control of $2B firm

A Delaware court filing exposes a bitter succession battle at the $2 billion tokenization firm after founder Nathan Allman's death in May.

Kathleen Allman, mother of late Ondo founder Nathan Allman, filed a Delaware Chancery complaint seeking to remove Ian De Bode as CEO, claiming controlling voting power over the $2 billion tokenization firm.

"Ms. Allman's claims are meritless, and that will come through clearly in court," De Bode said in an email. "The company continues to have the support of key stakeholders, including its lead investors and the Ondo Foundation."

The complaint, filed July 24, alleges De Bode improperly held himself out as CEO without board approval after Allman's death in May. At the time, the board had two seats — one held by Allman, one vacant — leaving no lawfully constituted board to approve a succession. A Hawaii court appointed Kathleen Allman personal representative of the estate in late June. She then appointed herself sole director, expanded the board to four seats, and on July 24 voted with newly appointed director Tahnee Towill — Nathan Allman's sister — to remove De Bode from all positions.

The estate is seeking an expedited ruling because uncertainty over who controls Ondo could affect contracts, expenditures and equity issuances. Ondo's ONDO token carries a market value of nearly $2 billion, with backers including Founders Fund, Coinbase Ventures, Tiger Global and Wintermute.

The succession vacuum

The complaint details a governance vacuum created by Allman's death. The filing states that "at the time of Nate's death, the Ondo Board had two directorships. Nate was sitting in one director seat, and the other seat was vacant. Thus, when Nate died, there were no directors." De Bode allegedly claimed he automatically became CEO under Ondo's bylaws without any board action.

The estate said it initially sought a cooperative transition, reaffirming De Bode as president and requesting basic corporate information including a shareholder list. Those efforts failed after De Bode and the company's outside counsel refused to recognize her actions or provide the requested records, according to the complaint. The filing also alleges De Bode used company resources to pressure Kathleen Allman into executing corporate documents to facilitate his control of Ondo.

What's at stake

Ondo Finance, founded by Allman in 2021 after his tenure at Goldman Sachs, specializes in bringing traditional financial products onchain. Its main offerings include tokenized U.S. Treasurys, stocks and ETFs, including the USDY and OUSG tokens. The firm raised $20 million in a 2022 Series A led by Founders Fund and Pantera Capital.

The legal dispute comes as Ondo continues to expand operations. The company this week appointed former Blockchain.com executive Adam Schlisman as chief financial officer. The Allman-led board said it "remains committed to our founder Nate Allman's belief that onchain markets are the future of finance" and is searching for his successor.

The court has not ruled on the allegations, and the filings reflect only the estate's version of events. The public version of the filing redacts the precise size of Kathleen Allman's voting interest and the cause of Nathan Allman's death. De Bode said the board has "worked diligently to engage constructively with the Allman estate to date and will continue to do so going forward."

For the broader RWA tokenization sector, the governance dispute at one of its leading protocols raises questions about succession planning at founder-led crypto companies. Ondo's position as a leader in tokenized Treasurys means any disruption to its operations could ripple through the sector, which has attracted institutional interest from traditional finance players.

This article is for informational purposes only and does not constitute investment advice.