WLFI reserve company ALT5 Sigma will be penalized for violating SEC regulations by failing to promptly disclose the suspension of its senior executives.

Odaily Odaily reports that WLFI reserve company ALT5 Sigma stated in a filing with the U.S. Securities and Exchange Commission (SEC) that its CEO was officially suspended on October 16th. However, internal emails indicate that the company's board of directors had actually placed him on "temporary leave" as early as September 4th. Several securities regulatory experts stated that this significant discrepancy in timing may violate disclosure rules. According to SEC regulations, publicly traded companies must disclose such a significant change within four trading days of an executive's actual cessation of duties (Form 8-K). If a company intentionally submits false or misleading information, it may constitute a violation of anti-fraud regulations. (Forbes)