Hawaii Court Faces New Conservatorship Request Over Ondo Finance Assets

A conservatorship application has been filed in Hawaii to manage the assets of Ondo Finance after its founder, Nathan Allman, passed away without a will. The application seeks to appoint a limited conservator for Kathleen Allman's share in the company, which holds significant controlling interest and ONDO tokens.

The application was made by Dr. Lani Clinton, Nathan Allman's half-sister, and Ondo investor David Chen. They alleged that Kathleen Allman suffers from alcohol use disorder and a progressive decline in her decision-making skills, making it difficult for her to manage the company's assets.

Kathleen Allman's lawyers disputed the allegations, stating that they were baseless and made after attempts to seize control of Ondo Finance and secure unfair personal gain were invalidated. The case highlights the ongoing management battle between Kathleen Allman and Ian De Bode, who took over as interim CEO following Nathan Allman's death.

The new conservatorship request comes on top of a previous lawsuit filed by Kathleen Allman against De Bode, alleging that he prepared a compensation package for himself shortly after Allman's death. The package included an annual salary and bonus, equity awards, and restricted token units valued at over $9 million.