Alt5 Sigma, a U.S.-listed cryptocurrency firm that recently announced a high-profile deal with a Trump-backed digital asset company, is facing increasing regulatory scrutiny and governance issues. This follows a series of missed audits, filing deadlines, and disruptions within its leadership team.
Regulatory Challenges and Leadership Changes
Alt5 Sigma has struggled to file its quarterly financial results and is at risk of being delisted from the Nasdaq. The company attributes part of this delay to the responsiveness of its previous auditor, who officially resigned in November. Following this, the company appointed Victor Mokuolu CPA PLLC as its new auditor, but concerns arose when it was discovered that the firm’s license had expired in August and had not been renewed as of late December.
The Texas State regulations prohibit the firm from performing any audit-related work until its license is reactivated. Alt5 Sigma indicated that its current auditor is undergoing a mandatory peer review with the state board of accountancy, which is expected to be completed by the end of January 2026. No audits or reviews of the company’s financial statements will be released until the firm’s license is active again.
Background on Alt5 Sigma’s Engagement with World Liberty Financial
Alt5 Sigma first garnered attention in August when it agreed to purchase and hold tokens issued by World Liberty Financial, a project backed by the Trump family. The agreement saw Eric Trump appointed as a board observer, and World Liberty Financial became a significant investor in the firm. Since then, however, Alt5 Sigma has struggled to comply with its regulatory obligations, raising concerns among investors and regulators alike.
Additionally, the company has faced governance challenges, with key personnel departures contributing to its compliance issues. CFO Jonathan Hugh left after just three months, and CEO Peter Tassiopoulos exited in October. The resignation of board member David Danziger last month has also left Alt5 Sigma in violation of the requirement to maintain a properly constituted audit committee.
Past Regulatory Sanctions and Future Outlook
Victor Mokuolu CPA PLLC, the newly appointed auditor, has a history of regulatory scrutiny. The firm was previously fined $30,000 by the Public Company Accounting Oversight Board for failing to inform regulators about audits for six public companies conducted in 2022. Last year, it faced an additional penalty of $15,000 for similar issues. The firm has also been working for over two years to correct deficiencies that led to a failing grade during a 2023 peer review assessment.
Despite these challenges, Alt5 Sigma continues to claim a significant holding of approximately 7.3 billion WLFI tokens valued at around $1.1 billion as of December 8. The company’s Canadian subsidiary and a former principal were recently found criminally liable by a Rwandan court for charges including illicit enrichment and money laundering, a verdict currently under appeal.
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