Ondo Finance control battle erupts after founder Nathan Allman's death
In brief
- Ondo Finance founder Nathan Allman died in May as sole director and controlling shareholder
- CEO Ian De Bode claims automatic succession under company bylaws
- Kathleen Allman appointed personal representative, voted to remove De Bode
- Delaware Chancery Court filings determine lawful control of tokenized real-world asset issuer
The succession dispute
De Bode claimed he automatically became CEO under Ondo's bylaws after Allman's death. He then elected himself as sole director through a voting agreement before probate concluded. De Bode took corporate actions including hiring advisors, approving performance grants, and attempting to add another director, asserting his authority without waiting for the estate's input.
Kathleen Allman initially sought a cooperative transition rather than immediately removing De Bode. She appointed herself to the board and adopted an interim policy allowing ordinary business operations to continue. That approach collapsed when De Bode and the company's outside counsel refused to recognize Kathleen Allman's actions or provide requested corporate records.
Escalation and interim control
The tension escalated at a July 24 board meeting. Kathleen Allman voted to remove De Bode from all company positions and appointed herself chair and interim CEO. The estate characterized Kathleen Allman's leadership as transitional rather than permanent.
The estate's objective is to stabilize governance while the board searches for Nathan Allman's long-term successor. The dispute now rests with Delaware courts to determine which party has lawful authority over the company.
De Bode's response
De Bode pushed back hard. "Kathy Allman's decision to file a lawsuit is regretful. This course of action is clearly not in the interests of the company, its stockholders, the team, or the Ondo ecosystem," he said in a statement. He also claimed the company has the support of key stakeholders, including its lead investors and the Ondo Foundation.
