- The company missed quarterly filing deadlines and now faces possible delisting from the Nasdaq.
- Departures from the board and management have left Alt5 Sigma out of compliance with audit committee requirements.
- These issues come months after Alt5 committed to a cryptocurrency token strategy backed by the Trump family.
Alt5 Sigma, a U.S.-based cryptocurrency company that struck a headline-grabbing deal involving a digital token backed by the Trump family, is facing heightened regulatory and corporate governance scrutiny after a string of audit, filing, and boardroom disruptions, the Financial Times reported.
The company has not yet released its overdue financial results and is working with an auditor whose firm license lapsed earlier this year.
These developments raise fresh questions about oversight at the company, only months after it announced plans to hold a large position in a politically connected cryptocurrency token.
Alt5 Sigma drew attention in August when it agreed to purchase and hold tokens issued by World Liberty Financial, a cryptocurrency project associated with the Trump family.
As part of that arrangement, Eric Trump joined Alt5 Sigma as a board observer, and World Liberty Financial became an investor in the company.
Since then, Alt5 Sigma has struggled to meet its regulatory obligations, sparking concerns among investors and regulators.
Auditor under review
In December Alt5 Sigma named Victor Mokuolu CPA PLLC as its new auditor.
But Texas filings show the firm’s practice license had expired in August and was not reinstated until December 26.
Under state rules the firm cannot perform audit work while its license is inactive.
Alt5 Sigma told the Financial Times that its auditor is undergoing a mandatory peer review with the Texas State Board of Public Accountancy, and that process is expected to conclude by the end of January 2026.
The company said no audit or reviewed financial statements will be issued until the firm’s license is active.
Although Victor Mokuolu renewed his individual CPA license on August 31, his firm’s license remained inactive at year-end.
Past regulatory sanctions
The audit firm has previously faced enforcement actions.
In 2023 the Public Company Accounting Oversight Board fined Victor Mokuolu CPA PLLC $30,000 for failing to notify the regulator of audits performed for six public companies in 2022.
The Texas State Board of Public Accountancy imposed an additional $15,000 penalty last year for the same violations.
The firm has also been working for more than two years to address deficiencies that resulted in an adverse assessment in its 2023 peer review.
Despite those issues, it disclosed 30 public company audit clients in a recent regulatory filing.
Mokuolu founded the firm in 2020 after working in the oil and gas industry.
Filing delays and board vacancies
Alt5 Sigma failed to file quarterly results for the period ending in late September, leaving it at risk of delisting from the Nasdaq.
The company partly attributed the filing delay and the pace of its reporting to its previous auditor, which formally resigned in November.
Management turnover has compounded the pressure.
Chief Financial Officer Jonathan Hugh, hired around the time of the Trump-related transaction, left after approximately three months.
Chief Executive Officer Peter Tassiopoulos departed in October.
Board member David Danziger resigned last month, leaving Alt5 Sigma out of compliance with requirements to maintain an audit committee of a specified size and with members possessing accounting experience.
Corporate changes and disclosures
Alt5 Sigma was created in July 2024 through a reverse merger with biotech company JanOne Inc., which adopted the Alt5 Sigma name that same month.
JanOne had previously changed its name in 2019 and operated under the Appliance Recycling Centers of America name before that.
The company says it provides infrastructure enabling financial institutions to integrate with digital assets.
As of December 8, it reported holding about 7.3 billion WLFI tokens with an estimated value of roughly $1.1 billion.
Since August the company’s chairman has been Zack Witkoff, co‑founder of World Liberty Financial and son of Steve Witkoff, who has served as a special envoy for President Donald Trump on peace negotiation matters.
Alt5 Sigma also disclosed that its Canadian subsidiary and a former owner were found guilty in a Rwandan court in May on charges including illicit enrichment and money laundering.
That conviction is under appeal, and both parties deny wrongdoing.