Finance24 September, 20262 min read
Ondo Finance Seeks Buyers After Founder Nathan Allman’s Death Amid Control Dispute
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Nathan Allman died, triggering a succession crisis and control battle involving his estate. Kathleen Allman’s daughter petitions Hawaiian court for limited guardianship over stake.
4 outlets told this the same way.
Sale talks after death
Ondo Finance sought potential buyers after founder and CEO Nathan Allman died, with the company’s products tied to tokenized U.S. Treasurys and stocks valued over $3.8 billion.
People familiar with the matter said outreach to prospective buyers occurred sometime after Allman’s death on May 25, and the legal fight over control of the company likely put any sale plans on hold.
Ondo’s products offered investors exposure to U.S. government debt and equities through tokenization, and the sale process was described as potentially delayed by a legal dispute over company control.
Pluang said Ondo Finance was looking for potential buyers amid $3.8B in tokenized U.S. Treasury and stock products following the death of its founder and CEO, Nathan Allman.
Denials and court fights
Ondo’s spokesman denied that the company was shopping for buyers, saying, "Nobody at the company has shopped it for sale, been in sales talks, or engaged or asked anyone to do so on its behalf." Allman’s estate filed suit against Ondo’s acting CEO Ian De Bode in early August, alleging an unlawful power and money grab and sparking a corporate control fight.
A court order left De Bode able to oversee day-to-day operations while he could not make major changes to the company while the dispute over its control was being resolved. Allman’s estate was awarded to his parents, 77-year-old Kathleen Allman and 82-year-old Lawrence Allman, after a probate process.
Succession stakes and assets
Kathleen Allman sued acting CEO Ian De Bode, accusing him of "brazen usurpation of corporate control" and alleging he began drafting a new $11 million compensation package within a week of Allman’s death.
De Bode’s compensation package included a $900,000 annual salary and bonus, a $1 million signing bonus, and 26 million restricted token units valued at more than $9 million.
Allman’s half-sister Dr. Lani Clinton and Ondo investor David Chen petitioned a Hawaiian court to establish a limited guardianship over Kathleen Allman, and the petition sought to address claims about cognitive impairment and financial mismanagement.
Dr. Clinton told the judge that Kathleen Allman "suffers from a long-standing alcohol use disorder" and from a progressive impairment of executive function, judgment, insight and social cognition.