Ondo Finance Faces Family Legal Split over Estate
A Hawaiian court petition challenges the financial capacity of Kathleen Allman, claiming cognitive decline complicates the Ondo Finance succession battle.
A Hawaiian court petition alleges that Kathleen Allman suffers from progressive cognitive impairment. The filing claims this condition prevents her from managing her share of the Ondo Finance estate. This allegation adds a new layer to the ongoing dispute over control of the digital asset issuer.
Nathan Allman died in May without a will. His parents inherited a controlling equity stake and a large holding of ONDO tokens. Acting CEO Ian De Bode now faces a lawsuit from Allman's mother regarding corporate authority and compensation.
Court petition targets financial competency
Dr. Lani Clinton and investor David Chen filed the petition for a limited conservatorship. They argue that Allman has a long-standing alcohol use disorder. The petition states her executive function and judgment are impaired to a degree that renders her unable to handle business affairs.
Allman denied these claims through her legal team. Her representatives called the allegations baseless and part of a desperate strategy by De Bode. They stated the petition was filed by an associate of the acting CEO.
Dispute centers on eleven million dollars
Kathleen Allman sued De Bode for alleged usurpation of corporate control. The complaint claims he plotted an $11 million compensation package within a week of the founder's death. This package included a $900,000 annual salary and a $1 million signing bonus.
The compensation also covered 26 million restricted token units valued at more than $9 million. It included awards for 846,000 shares that would have increased De Bode's stake from 0.33% to 8%. Vesting was set to begin the day after Allman died.
Board control remains contested
Allman appointed herself and another child to the Ondo board after De Bode took over. She named herself chair and interim CEO and attempted to remove De Bode from all positions. A court order in September kept De Bode as acting CEO and a board member.
The estate accuses De Bode and Chen of invalid appointments and breach of fiduciary duties. CoinDesk reported that Ondo Finance declined to comment on the allegations. Calls to De Bode regarding the legal filings went unanswered.
