- FT flags auditor compliance concerns as Trump-linked Alt5 Sigma risks Nasdaq delisting over missed filings.
- Leadership turmoil follows Alt5 Sigma’s $1.5B token deal tied to World Liberty Financial and the Trump family.
- Overseas legal issues, governance gaps, and turnover add pressure to Alt5 Sigma’s crypto pivot.
Fresh scrutiny has emerged around a Trump crypto venture after the Financial Times reported that Alt5 Sigma retained an auditor with a troubled compliance history. The development adds to a growing list of governance, legal, and leadership concerns surrounding the Nasdaq-listed firm.
Auditor With Compliance Issues Raises Red Flags
According to the FT, Alt5 Sigma hired an accounting firm that reportedly lacks the appropriate license and previously failed an industry peer review inspection. The firm has a record of non-compliance with professional standards, raising questions about the quality of financial oversight at Alt5 Sigma.
The timing is notable, as Alt5 Sigma was recently notified by Nasdaq that it no longer meets listing requirements due to its failure to file a required quarterly report. If the issue is not resolved, the company risks being delisted from the exchange.
Deep Trump Family Ties to the Crypto Venture
Alt5 Sigma is closely linked to World Liberty Financial (WLF), a crypto venture connected to the Trump family. A Trump-affiliated business entity owns 60% of WLF and is entitled to 75% of net proceeds from token sales.
Donald Trump, Eric Trump, and Donald Trump Jr. all hold titles within the broader project, giving the venture both political visibility and heightened regulatory attention.
Related: Trump-Backed Crypto Firm Loses Another CEO After $1.5 Billion Token Deal
Leadership Shakeups Follow $1.5B Token Deal
The latest concerns come months after Alt5 Sigma entered a high-profile agreement in August to purchase up to $1.5 billion worth of digital tokens from World Liberty Financial. The deal drew attention because it could send more than $500 million to the Trump family through token sales.
Soon after the agreement, Alt5 Sigma removed Acting CEO Jonathan Hugh and parted ways with COO Ron Pitters. The company said the departures were not due to misconduct but did not give further details. This was the second CEO exit in about two months.
After the deal, Trump ally Zachary Witkoff became chairman of Alt5 Sigma’s board. WLFI co-founder Zachary Folkman and Eric Trump joined as non-voting board observers. Donald Trump Jr. also appeared with them at a Nasdaq bell-ringing ceremony to mark the partnership.
Legal Problems Emerge After Deal
Behind the scenes, Alt5 Sigma was already facing legal trouble overseas when it signed the deal. Earlier this year, one of its subsidiaries was found criminally liable for money laundering in Rwanda. A company-linked executive, Andre Beauchesne, was also found guilty and sentenced to prison.
SEC filings later showed that Alt5 Sigma’s board was not told about the Rwanda case until late August — weeks after the token deal with World Liberty Financial was completed. Both the subsidiary and Beauchesne have appealed, saying they were victims of fraud.
After the disclosure, CEO Peter Tassiopoulos was suspended in October, adding to the company’s leadership turmoil. Alt5 Sigma has since named longtime executive Tony Isaac as acting CEO.
With auditor concerns, possible Nasdaq compliance issues, frequent leadership changes, and unresolved legal cases, Alt5 Sigma’s effort to reshape itself through the WLFI token deal is facing growing pressure.
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Source: https://coinedition.com/alt5-sigma-faces-nasdaq-delisting-risk-amid-auditor-and-filing-issues/
