A legal conflict within the family of Nathan Allman, founder of cryptocurrency platform Ondo Finance, has escalated following his sudden death in May at age 32. The dispute centers on control of his equity stake and digital asset holdings, which include significant quantities of ONDO tokens.

Nathan Allman died intestate, leaving his estate — comprising his controlling ownership position in Ondo Finance and a substantial token portfolio — to his parents, Kathleen Allman and Lawrence Allman. Shortly after his death, Kathleen Allman assumed leadership roles within the company, appointing herself chair and interim chief executive while attempting to remove Ian De Bode, who had been serving as acting CEO.

De Bode and David Chen, an early investor in Ondo, have contested these actions in Delaware court. They allege that Kathleen Allman and her daughter Dr. Lani Clinton sought to exert undue influence over corporate decisions, including the approval of a compensation package for De Bode valued at approximately $11 million. The package included a $900,000 annual salary, a $1 million signing bonus, and token awards that would have increased his stake from 0.33% to 8%.

In September, Chen and Dr. Clinton filed a petition in a Hawaiian court requesting a limited conservatorship over Kathleen Allman’s share of the estate. The petition cites concerns about her mental capacity and financial judgment, including allegations of long-term alcohol use and progressive cognitive decline. Dr. Clinton, a physician at Duke University, stated that her mother exhibits symptoms consistent with frontotemporal dementia and is unable to manage complex financial affairs.

Kathleen Allman has denied all allegations, calling the petition baseless and politically motivated. She asserted that the legal actions represent a continuation of efforts by De Bode and Chen to seize control of Ondo after their earlier attempts were rejected by the Delaware Court of Chancery. She emphasized her commitment to corporate governance and the legacy of her son.

The petition includes claims of excessive spending by Kathleen Allman, such as the purchase of a $18.5 million beachfront property in Honolulu and attempts to acquire a luxury yacht. It also references financial distress, including a $200,000 unpaid invoice for home renovations and prior difficulties meeting mortgage obligations.

A separate filing from the estate accused De Bode and Chen of forum shopping and attempting to delay proceedings in Delaware by initiating litigation in Hawaii. It further alleged coordination between the two parties to appoint a sympathetic board member and influence fiduciary decisions during a period of leadership vacuum.

Ondo Finance has declined to comment on the ongoing litigation. De Bode did not respond to requests for comment.

The situation remains unresolved, with both sides pursuing legal remedies in multiple jurisdictions. The outcome will likely influence the future governance and strategic direction of Ondo Finance during this period of transition.