New Conservatorship Request in Ondo Finance Estate: Who Will Manage Controlling Interest and ONDO?
Following the death of Ondo Finance founder Nathan Allman, a new conservatorship application has been filed for company shares and significant ONDO assets.
According to information reported by CoinDesk, Allman’s half-sister Dr. Lani Clinton and Ondo investor David Chen have petitioned a Hawaii court for the appointment of a limited conservator for 77-year-old Kathleen Allman’s share in the Ondo estate. At the center of the application are Kathleen Allman’s controlling interest in the company, as well as a large amount of ONDO tokens that are currently liquid or set to unlock over the next three years.
Nathan Allman passed away in May at age 32 without a will. A probate court subsequently identified his parents, Kathleen and Lawrence Allman, as his heirs. Consequently, the management of the stock and token assets in Ondo Finance became part of a legal dispute within the family.
The inheritance battle at Ondo Finance intensifies
The filing alleged that Kathleen Allman suffers from alcohol use disorder and a progressive decline in her decision-making, reasoning, and social judgment skills. Dr. Clinton requested a review of medical records and a dementia evaluation, arguing that her mother cannot manage her assets or business affairs of this scale. The documents suggested that behaviors in recent years may be consistent with a specific type of dementia.
Kathleen Allman, through her lawyers, characterized the allegations as baseless. Arguing that the application was made after attempts to seize control of Ondo Finance and secure unfair personal gain were invalidated, Allman stated she would continue to support the long-term success of the company. Ondo Finance did not comment, and Ian De Bode could not be reached.
The new filing comes on top of a management battle that previously began between De Bode and Kathleen Allman. De Bode, who took over as interim CEO following Nathan Allman’s death, faced an attempted ousting after Kathleen Allman appointed herself and her daughter, Tahnee Towill, to the board of directors. However, as of a court ruling dated September 3, De Bode remains the interim CEO and a board member.
Controversial compensation package also at the center of the case
In a previous lawsuit filed by Kathleen Allman, it was alleged that De Bode prepared a new compensation package shortly after Allman’s death. According to court documents, the package included a $900,000 annual salary and bonus, a $1 million signing bonus, and 26 million restricted token units valued at over $9 million.
The package also included equity awards that could increase De Bode’s stake in Ondo Finance from 0.33% to 8%. While Kathleen Allman argues that these appointments and payments are invalid, the new conservatorship request has further expanded the dispute over who will manage the estate and ONDO assets.
The application further alleged that Nathan Allman had purchased an $18.5 million Honolulu beachfront home for his family, and that Kathleen Allman had incurred expenses related to private flights, stays costing approximately $4,000 per night, and a yacht valued at around $4 million. These allegations were presented as part of the conservatorship request before the court.