- The company missed quarterly filing deadlines and now faces possible delisting from the Nasdaq stock exchange.
- Departures from the board and senior management left Alt5 Sigma out of compliance with audit committee requirements.
- These issues have arisen months after Alt5 Sigma committed to a Trump‑backed crypto token strategy.
Alt5 Sigma, a U.S.-listed crypto company that drew attention for agreeing to hold a digital asset tied to the Trump family, is under increasing regulatory and governance scrutiny after a series of audit issues, missed filings and boardroom disruptions, the Financial Times reported.
The company has not yet released its delayed financial results and is working with an audit firm whose practice license lapsed earlier this year.
These developments raise fresh questions about oversight at Alt5 Sigma only months after the company pledged to hold a large position in a politically connected crypto token.
Alt5 Sigma made headlines in August when it agreed to acquire and hold tokens issued by World Liberty Financial, a crypto project supported by the Trump family.
The deal also included Eric Trump joining Alt5 Sigma as a board observer and World Liberty Financial becoming an investor in the company.
Since that agreement, Alt5 Sigma has struggled to meet its regulatory obligations, provoking concern among investors and regulators.
Auditor under scrutiny
In December, Alt5 Sigma named Victor Mokuolu CPA PLLC as its new auditor.
But filings in Texas show the firm’s practice license expired in August and had not been renewed as of December 26.
State rules prohibit a firm from performing audit work while its license is inactive.
Alt5 Sigma told the Financial Times that its auditor is undergoing a mandatory peer review under Texas State Board of Public Accountancy procedures, and that the review process is expected to conclude by the end of January 2026.
The company said no audit or review report on its financial statements will be issued until the firm’s license is active.
Although Victor Mokuolu renewed his personal certified public accountant license on August 31, his firm’s license remained inactive at year‑end.
Past regulatory enforcement
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 report audits of six public companies performed in 2022.
The Texas board 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 led to an unsuccessful peer review in 2023.
Despite these issues, a recent regulatory filing disclosed 30 clients for small‑company audits.
Mokuolu founded the firm in 2020 after working in the oil and gas industry.
Filing delays and board gaps
Alt5 Sigma failed to file its quarterly results for the period ending in September, exposing it to possible delisting from the Nasdaq exchange.
The company attributed the delay in part to timing and the pace of its previous auditor, which formally resigned in November.
Governance problems have added pressure.
Chief Financial Officer Jonathan Hugh, who joined around the time of the Trump‑related deal, departed after three months.
Chief Executive Officer Peter Tassiopoulos left in October.
Board member David Danziger resigned last month, leaving Alt5 Sigma out of compliance with rules requiring an audit committee of a specified size with accounting expertise.
Corporate changes and disclosures
Alt5 Sigma was formed in July 2024 when biotech firm JanOne Inc. merged with Alt5 Sigma and adopted the Alt5 Sigma name.
JanOne had previously rebranded in 2019 and had operated under the name Appliance Recycling Centers of America.
The company says it provides infrastructure that enables financial institutions to integrate with digital assets.
As of December 8, it held roughly 7.3 billion $WLFI tokens with an estimated value of about $1.1 billion.
Since August, the company’s chairman has been Zack Witkoff, co‑founder of World Liberty Financial and the son of Steve Witkoff, who serves as a special envoy for peace negotiations for President Donald Trump.
Alt5 Sigma also disclosed that its Canadian subsidiary and a former partner were found criminally liable by a Rwandan court in May for offenses including illicit enrichment and money laundering.
That decision is under appeal, and both parties deny wrongdoing.