Someone was trying to sell Ondo Finance after founder Nathan Allman's death
Ondo Finance was quietly shopped to potential buyers following the unexpected death of its founder and CEO, Nathan Allman, on May 25, people familiar with the matter told CoinDesk. The company and Allman’s estate dispute over control has since produced court filings and likely stalled any sale efforts, while Ondo has denied that it sought buyers.
Why It Matters
The episode highlights how sudden leadership vacuums and ensuing legal battles can disrupt strategic options at crypto firms with sizable assets under management. Ondo is a major tokenization platform with over $3.8 billion across its products, so control of the company and its token holdings carries industry significance.
Key Facts
- Founder and CEO: Nathan Allman (died May 25)
- Reported outreach timing: Sometime after May 25, 2024
- Company assets: More than $3.8 billion across tokenized Treasuries and stocks
- Legal action: Allman’s estate filed suit against acting CEO Ian De Bode in early August
- Probate outcome: Estate awarded to parents Kathleen and Lawrence Allman
People familiar with the situation told CoinDesk that Ondo Finance was presented to potential buyers following the sudden death of founder and CEO Nathan Allman on May 25. The outreach reportedly occurred in the weeks after his passing, though the identities of those behind the contacts were not specified. An Ondo spokesperson has strongly denied that the company was put up for sale or that anyone at the firm engaged in selling discussions.
The company is now entangled in a contested fight over corporate control. In early August, Allman’s estate filed a lawsuit against acting CEO Ian De Bode, accusing him of an unlawful grab for power and money. At the same time, the probate process awarded Allman’s estate to his parents, 77-year-old Kathleen Allman and 82-year-old Lawrence Allman, creating questions about the future of Allman’s controlling stake and his holdings of ONDO tokens.
Under an existing court order, De Bode remains in the role of CEO and can manage day-to-day operations, but he has been barred from making major changes to the company while the dispute is ongoing. A separate petition — filed by Allman’s half-sister and an Ondo investor — sought to further limit Kathleen Allman’s authority over her portion of the estate; Kathleen has denied the petition’s claims. The estate declined to comment to CoinDesk about the reported sale outreach.
Founded in 2021 by former Goldman Sachs executives and based in New York, Ondo offers tokenized U.S. Treasuries and stocks and had more than $3.8 billion across its products at the time of the report. The firm’s OUSG fund includes investments in BlackRock’s tokenized BUIDL fund. Ondo has disclosed $24 million in equity financing across two rounds plus a separate $10 million token sale, and its equity investors include Pantera Capital, Founders Fund, Coinbase Ventures and Tiger Global.
Sources said the escalating legal dispute over ownership and control has likely put any sale talks on hold. CoinDesk was unable to determine whether a valuation had been discussed during the reported outreach, and Ondo did not disclose a sale price; the company reiterated to CoinDesk that the suggestion it was being shopped for sale is "wholly untrue."
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Original source: CoinDesk