- The company missed the deadline to file its quarterly report and now faces possible delisting from Nasdaq.
- Departures from the board and the CEO left Alt5 Sigma unable to meet audit committee compliance requirements.
- These issues emerged months after Alt5 committed to a cryptocurrency strategy supported by the Trump family.
Alt5 Sigma, a U.S.-listed crypto company that struck a high-profile deal with a Trump-backed digital asset venture, is facing increased regulatory and governance scrutiny after a series of audit, filing and board-level disruptions, the Financial Times reported.
The company has not yet filed the overdue financial report and is working with an accounting firm whose practice license lapsed earlier this year.
These developments raise fresh questions about oversight, coming months after Alt5 Sigma pledged to hold a politically connected cryptocurrency position.
Alt5 Sigma drew attention in August when it agreed to purchase and hold tokens issued by World Liberty Financial, a crypto project backed by the Trump family.
The transaction also named Eric Trump as a board observer at Alt5 Sigma, while World Liberty Financial became an investor in the company.
Since that deal, Alt5 Sigma has struggled to meet regulatory obligations, prompting concern from investors and oversight bodies.
Auditor under review
In December, Alt5 Sigma appointed Victor Mokuolu CPA PLLC as its new auditor.
However, Texas records show that the firm’s practice license expired in August and had not been renewed as of December 26.
State rules prohibit the firm from performing audit work until its license is reinstated.
Alt5 Sigma told the Financial Times that its auditor is undergoing a mandatory peer review under Texas Board of Public Accountancy rules, a process expected to conclude by the end of January 2026.
The company said it will not have its financial statements audited or reviewed until the firm’s license is active.
Although Victor Mokuolu renewed his individual certified public accountant license on August 31, the firm’s practice license remained inactive through the end of the year.
Past regulatory penalties
The auditing firm has faced enforcement actions in the past.
In 2023, the Public Company Accounting Oversight Board fined the firm $30,000 for failing to notify regulators about audits it performed for six public companies in 2022.
The Texas board added a $15,000 penalty last year for the same violations.
The firm has also been addressing deficiencies that led to a failing grade in a 2023 peer review.
Nevertheless, a recent filing disclosed that the firm audits roughly 30 small-cap clients.
Mokuolu founded the firm in 2020 and previously worked in the oil and gas sector.
Filing delays and board vacancies
Alt5 Sigma has not filed its quarterly report for the period ending September 30 and faces the risk of being delisted from Nasdaq.
The company partially attributes the delay to slow responses from its former auditor, who resigned in November.
Governance issues have added further pressure.
Chief Financial Officer Jonathan Hugh, who was hired around the time of the Trump-related deal, left three months later.
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 certain size and with accounting expertise.
Corporate changes and disclosures
Alt5 Sigma was formed in July 2024 by biotech company JanOne Inc., which merged into Alt5 Sigma that same month and adopted the Alt5 Sigma name.
JanOne had rebranded in 2019; it previously operated as Appliance Recycling Centers of America.
The company says it provides infrastructure enabling financial institutions to integrate with digital assets.
As of December 8, the company held approximately 7.3 billion $WLFI tokens, worth about $1.1 billion.
Since August, the chairman has been Zack Wittekoff, son of Steve Wittekoff—co‑founder of World Liberty Financial and a former Trump administration envoy for peace negotiations.
Alt5 Sigma also disclosed that its Canadian subsidiary and a former executive were found criminally liable by a Rwandan court in May on charges including illicit enrichment and money laundering.
That ruling is under appeal, and both sides deny wrongdoing.