Image credit: Shutterstock
A fight over control of Ondo Finance has reached Delaware Chancery Court, with founder Nathan Allman’s estate challenging CEO Ian De Bode’s authority and seeking a ruling on who lawfully controls the tokenization company.
Three court filings focus on actions taken after Allman died unexpectedly in May. His mother, Kathleen Allman, argues that his controlling voting interest passed to the estate and that De Bode took corporate actions before she gained authority to exercise those shares.
Estate Challenges De Bode’s Actions Before June 26 Probate Appointment
Nathan Allman died as Ondo’s CEO, sole sitting director and controlling shareholder. His voting power became part of his estate, but Kathleen Allman was not appointed personal representative through Hawaii probate proceedings until June 26.
The estate alleges that De Bode improperly claimed he automatically became CEO under Ondo’s bylaws, elected himself sole director through a voting agreement and took corporate actions while the controlling voting stake could not be exercised. Those actions allegedly included hiring advisers, approving performance grants and attempting to add another director.
Ondo publicly announced De Bode as CEO after Allman’s death, saying its longtime president had overseen strategy, product and day-to-day operations for more than two years.
Kathleen Allman Votes to Remove De Bode on July 24
After gaining authority over the estate’s shares, Kathleen Allman initially appointed herself to the board, reaffirmed De Bode as president and requested corporate records, including a shareholder list.
The estate says De Bode and Ondo’s outside counsel later refused to recognize those actions. Kathleen Allman subsequently expanded the board and, at a July 24 meeting, voted to remove De Bode from company positions while appointing herself chair and interim CEO.
De Bode called the claims meritless and said Ondo’s current leadership retains support from key stakeholders, including lead investors and the Ondo Foundation.
Estate Seeks Limits on Major Corporate Actions
The estate is seeking an expedited ruling on Ondo’s lawful leadership and restrictions on extraordinary corporate actions while the dispute remains unresolved. The filings say uncertainty could affect contracts, expenditures, and equity issuances.
The court has not ruled on the competing claims. Ondo continues operating, and this week appointed former Blockchain.com CFO Adam Schlisman as chief financial officer.
The Delaware court has been asked to determine whether De Bode’s appointment and subsequent corporate actions were valid after Allman’s death.
