A power struggle has erupted at tokenized real-world asset issuer Ondo Finance following the May death of founder and CEO Nathan Allman, according to a CoinDesk report unsealing three Delaware Chancery Court filings. The estate of Allman alleges that Ian De Bode, Ondo’s former president and current CEO, unlawfully seized control of the company while the voting stake tied to the founder’s controlling shares was tied up in probate proceedings.
This lawsuit mirrors other high-stakes crypto legal battles, such as when RedotPay Vows to ‘Vigorously’ Defend Against $470 Million Binance Lawsuit, as industry players increasingly turn to courts to resolve corporate governance clashes.
In a separate case highlighting the sector’s litigation risks, a lawsuit alleges Apple kept a fake Bitcoin wallet on its App Store after a reported $875,000 theft. The Ondo dispute underscores how control over a tokenization platform can become contested when key-man risk materializes.
The Core Allegations and Legal Maneuvers
The estate, represented by Allman’s mother as executor, claims that De Bode and his allies reconstituted Ondo’s board in the days after Allman’s death and pushed through a series of governance changes that diluted the estate’s voting power. The complaint asks the Delaware court to determine the rightful controller of Ondo Finance and to freeze extraordinary corporate actions until the matter is resolved.
According to the filing, Allman died as Ondo’s sole director and controlling shareholder. Because his shares passed to his estate, the voting rights were effectively frozen during probate, creating a governance vacuum that De Bode allegedly exploited. The estate says it initially cooperated with De Bode but moved to remove him after reconstituting the board.
What This Could Mean for Ondo and Tokenized RWAs
The outcome of the Delaware case could shape the future of Ondo Finance, a key player in the real-world asset (RWA) tokenization space that includes tokenized Treasury products. Prolonged litigation threatens to distract management, unsettle investors, and potentially delay product launches or partnerships.
For the broader RWA sector, the dispute highlights the fragility of founder-led companies in crypto and the importance of robust succession planning. As tokenized assets move toward mainstream adoption, governance disputes at protocol-adjacent entities could draw regulatory scrutiny and dampen institutional appetite.
The court has yet to rule on the estate’s motion for a status quo order. Ondo Finance and De Bode have not yet publicly responded to the allegations. BTC-Pulse will monitor the case for further developments.
