Ondo Finance is facing an expanding legal battle after founder Nathan Allman died suddenly without leaving a will, throwing the inheritance of his controlling company stake and a large ONDO token holding into dispute.
The fight has centered on control of the company between interim CEO Ian De Bode and Allman’s mother, Catherine Allman. The latest turn came after Catherine’s daughter accused her of dementia, alcohol abuse, and reckless spending, then joined early investor David Chen in asking a Hawaii court for a limited conservatorship to manage Catherine’s Ondo Finance shares and token estate.
Delaware case focuses on company control
After Allman died at age 32, a probate court named his parents, Lawrence Allman and Catherine Allman, as legal heirs. Catherine then appointed herself and her daughter to the board and moved to remove interim CEO Ian De Bode.
She later filed suit in the Delaware Court of Chancery, accusing De Bode of trying to take control of the company by advancing an $11 million compensation package within a week of the founder’s death. The package, according to the filing, included 26 million restricted token units and a sharp increase in his equity stake to 8%.
Half-sister and investor seek limited conservatorship in Hawaii
Allman’s half-sister Rani Clinton and early investor David Chen have now turned to a Hawaii court, seeking a limited conservatorship over Catherine and asking for authority to manage the Ondo Finance shares and token estate in her possession.
The court filing says Catherine has a long history of alcohol use disorder and has shown dementia-related symptoms, impairing her executive function and judgment to the point that she cannot manage substantial business assets.
Through her lawyer, Catherine denied the allegations and said the Hawaii action was a jurisdictional shift by De Bode’s camp after losing in Delaware.
Court filings cite spending and cash-flow concerns
Court documents also raised concerns about estate management and cash flow. They say Catherine had long relied on Allman to support an expensive lifestyle, including the purchase of a $18.5 million beachfront home in Honolulu, plans to buy a $4 million yacht, and private jet travel.
Messages submitted by the petitioners show that nine days after the founder’s death, Catherine was already asking investors about her personal cash flow and payment for pool construction work. The petitioners cited those exchanges as evidence of financial management risk.
Ondo Finance declined to comment on the litigation.