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Control Battle at Ondo Finance Escalates After Founder’s Death

The dispute centers on voting rights, board authority, and the Delaware Chancery Court. Ondo Finance is also facing pressure as a player in tokenized Treasuries and other RWA products.

By Finst News
• 2 min read
Control Battle at Ondo Finance Escalates After Founder’s Death

Key Takeaways

  • Ondo Finance has been locked in a control fight since founder Nathan Allman died earlier this year.
  • The estate says CEO Ian De Bode overreached while Allman’s voting rights were still tied up in probate.
  • The dispute could affect Ondo’s governance, even as the company says it wants business to continue as usual.

A bitter control dispute has emerged at Ondo Finance following the death of founder Nathan Allman earlier this year. His estate argues that CEO Ian De Bode overstepped by taking on extra authority while Allman’s voting rights were still tied up in probate proceedings in Hawaii.

Fight Over the Board

Three filings in the Delaware Chancery Court are asking a judge to determine who has the legal right to run Ondo Finance and to temporarily stop major company actions. The dispute focuses on the period immediately after Allman died in May, when his voting rights became part of the estate and could only be used on June 26, after Kathleen Allman was appointed personal representative.

In the complaint, the estate says De Bode claimed he automatically became CEO under Ondo’s bylaws, named himself the sole director through a voting agreement, and then moved ahead with several actions, including bringing in advisors, approving performance grants, and trying to add another board member. The estate argues that the bylaws actually required the board to formally fill the CEO vacancy.

Once the voting rights were transferred, Kathleen Allman initially tried to manage the transition without disruption. She appointed herself to the board, put a temporary setup in place so day-to-day operations could continue, confirmed De Bode as president, and requested basic records such as a shareholder list.

Why This Matters

The case has broader implications for the crypto industry because Ondo Finance is a major name in tokenized real-world assets, a market that brings traditional financial products onto blockchain rails. Founded in 2021 by former Goldman Sachs professionals, the company has built products around tokenized U.S. Treasuries and other investment instruments, including OUSG and USDY.

That makes governance questions especially important. As a business built on trust, compliance, and institutional relationships, Ondo can’t really afford prolonged uncertainty around leadership and authority, particularly after naming a new CFO earlier this week. The broader tokenization trade is also gaining momentum: RWA tokens were one of the strongest themes in the crypto market in July.

Ondo Sticks to Continuity

De Bode said in an email to CoinDesk that Kathleen Allman’s move was “regrettable” and would not serve the interests of the company, shareholders, the team, or the Ondo ecosystem. He added that the estate’s claims have no basis and that current leadership still has backing from key stakeholders, including lead investors and the Ondo Foundation.

In a separate statement, Ondo’s board said the company remains committed to Nate Allman’s view that onchain markets are the future of finance. The board also said Ondo intends to keep operating without interruption while it searches for a permanent successor. The court has not made a ruling yet, and the filings so far only present the estate’s version of events.

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