Alt5 Sigma, a Las Vegas-based cryptocurrency finance firm, is once again embroiled in controversy. The company, which has ties to President Donald Trump's family, is facing potential delisting from the Nasdaq after its auditor was found to have been subject to regulatory sanctions and an expired license.
Audit firm license expiresโฆ Audit work continues despite license suspension
The Financial Times reported on Monday (local time) that Alt5 Sigma's newly appointed audit firm, Victor Mokuolu CPA PLLC, had its Texas CPA license expired in August. While current regulations make it illegal to perform audit work without a renewed license, the firm had not renewed its license until December.
The audit firm previously received a failing grade in a 2023 peer review and has been sanctioned by U.S. regulators for repeated failure to submit required documentation. The firm explained, "The auditor is undergoing a review process in accordance with Texas Board of Accountancy regulations, and its license is expected to be reinstated by the end of January 2026."
However, given that the company is a politically symbolic company with ties to President Trump's family, the fact that the accountant entrusted with the audit was unqualified, in a situation where the unlisted company needs to secure credibility through audits, is quite a shock to investors.
Ultimately, Alt5 Sigma fired the auditor last Christmas after the Financial Times reported on the matter and replaced him with a new accounting firm, LJ Soldinger Associates.
Delayed earnings reportsโฆ Nasdaq delisting warnings
In addition to the unlicensed audit, Alt5 Sigma was also notified of the possibility of delisting from Nasdaq due to delayed earnings reporting. As of the end of September, the company had failed to submit its quarterly earnings on time, citing a lack of "timeliness and responsiveness" from its previous audit firm as the reason. The auditor ultimately left the company last month.
Last August, Alt-5 Sigma attracted investment from President Trump's family business, World Liberty Financial, and has been working with them to develop an independent cryptocurrency management strategy. The goal was to accumulate assets worth up to $1.5 billion (approximately KRW 2.1565 trillion), centered around a token called WLFI. During this process, many of WLFI's co-founders joined the board, and President Trump's son, Eric Trump, also joined the board, but resigned a few weeks later.
A series of personnel changesโฆ Audit Committee members fail to meet qualifications.
The sudden departure of senior management is also adding to the internal turmoil. CFO Jonathan Hu left the company after just three months, and CEO Peter Tassiopoulos resigned in October. Director David Danziger also left in November. Currently, Alt5 Sigma fails to meet the audit committee requirement, a requirement for a NASDAQ-listed company.
The company's flagship token, WLFI, is currently trading at around $0.14 (approximately 201 won).
Article Summary by TokenPost.ai
๐ Market Interpretation
While the company attracted investor attention due to its involvement with President Trump's family, controversy surrounding its auditor's credibility and failure to report earnings have made its continued listing uncertain. The credibility of the WLFI token-based strategy itself is also inevitably undermined.
๐ก Strategy Points
Investors with exposure to WLFI tokens should closely monitor the company's listing status and any changes in management. If there are related projects or affiliates, the risk of spillover should also be considered.
๐ Glossary
- Audit (peer review): A process in which a third-party accountant objectively reviews a company's financial status.
- Nasdaq Non-Compliance Notice: A warning procedure that requires listed companies to take corrective action within a certain period of time if they violate regulations.
- WLFI: A token issued by President Trump's cryptocurrency company
๐ก Want to know more? AI-prepared questions for you:
A. Alt5 Sigma, a Las Vegas-based, NASDAQ-listed company, rebranded this year from a biotech company to a digital asset finance company. The company aimed to become the first publicly listed company to accumulate WLFI, the token of World Liberty Financial, a cryptocurrency project backed by President Trump. WLFI is currently trading at $0.14 (approximately 201 won) on the weekly chart.
A. Alt5 Sigma violated Nasdaq regulations by failing to submit its quarterly earnings report on time as of the end of September. Nasdaq issued a notice of noncompliance, requiring the company to submit a compliance plan by January 20, 2026. Delisting is a serious situation that would prevent the company from trading its stock on Nasdaq, significantly damaging investor confidence.
A. Alt5 Sigma recently switched audit firms to Victor Mokuolu CPA PLLC, whose Texas CPA license expired in August and was not renewed, leading to regulatory fines. The firm's appointment, despite not being licensed, sparked controversy. Ultimately, the firm was terminated on Christmas Day and replaced with LJ Soldinger Associates. Audits play a crucial role in independently verifying a company's financial health.
A. In August, World Liberty Financial partnered with Alt5 Sigma and participated as an investor, bringing several co-founders to the board. Notably, Jack Witkoff, son of President Trump's special envoy, Steve Witkoff, became chairman of the board, and Eric Trump joined as a director but resigned in September. This connection allowed the company to pursue a $1.5 billion (approximately KRW 2.1565 trillion) cryptocurrency finance strategy based on the WLFI token.
A. The company recently experienced a series of key personnel departures, including the resignation of CFO Jonathan Hyo-jeong in October, CEO Peter Tassiopoulos in October, and board member David Danziger in November, all within three months of his departure. This further violated Nasdaq regulations by failing to meet audit committee size and accounting expertise requirements. This leadership vacuum exposes operational instability and governance issues, which should serve as a warning signal to investors.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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