Tokenization platform Ondo Finance was reportedly shopped to prospective buyers through backchannels shortly after the sudden death of founder and CEO Nathan Allman on May 25. According to three sources familiar with the matter, the secret outreach emerged just as the company was facing a total leadership vacuum.
Allman passed away at age 32 without leaving a will. The lack of an estate plan has triggered complete uncertainty over the fate of his controlling stake in the company and his substantial ONDO token holdings.
The ownership dispute has since widened, dragging Allman’s parents, half-brother, and company executives into court.
Inheritance Dispute Leads to Lawsuit
Following probate court proceedings, Allman’s estate was awarded to his parents: 77-year-old Kathleen Allman and 82-year-old Lawrence Allman. However, transferring the assets to his parents has done little to ease tensions at the firm, which was founded in 2021 by the former Goldman Sachs executive.
In early August, Allman’s estate administrators filed a lawsuit against Ian De Bode, the firm’s acting CEO. The family accused De Bode of unlawfully seizing operational control and company funds following the founder’s death.
In response to the initial lawsuit, the court issued a temporary order allowing De Bode to remain as CEO and manage day-to-day operations. However, the court simultaneously barred De Bode from making major changes or decisions while the legal battle remains ongoing.
Who Controls Allman’s Estate
Beyond the family’s clash with management, Allman’s half-brother, alongside an Ondo investor, filed a separate petition aiming to limit Kathleen Allman’s control over her son’s estate. In response to the filing, Kathleen firmly denied all allegations leveled against her.
Addressing rumors of an external sale, a spokesperson for New York-based Ondo Finance issued a strong denial. They maintained that no company representative had ever put Ondo up for sale, dismissing talk of a potential sale as completely untrue.
According to one source, the escalating legal fight among the heirs has likely frozen any potential sale plans that were previously explored.
Markets Keep Moving
Amid the internal turmoil at the tokenized US Treasuries and equities developer, the crypto market continued charting its own course. On Thursday, the ONDO token climbed to the psychological $0.5 level, ranking among the day’s top-performing altcoins.
The shareholder dispute continues on its own track, while retail investors keep trading the token on exchanges regardless of who will ultimately take the helm once court proceedings conclude.
Reported via CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
