- The company missed quarterly filing deadlines and now faces possible delisting from the Nasdaq.
- Departures from the board and executive team left Alt5 Sigma out of compliance with the audit committee requirements.
- The issues surfaced months after Alt5 pursued a politically connected crypto token strategy backed by the Trump family.
Alt5 Sigma, a US-listed crypto company that entered a high-profile deal with a digital-asset venture backed by the Trump family, is under growing regulatory and governance scrutiny after a series of audit, filing and board disruptions, the Financial Times reported.
The company has not yet filed its delayed financial results and is now working with an accounting firm whose practice license lapsed earlier this year.
These developments have raised fresh questions about the company’s oversight just months after it agreed to hold large amounts of a politically connected crypto token.
Alt5 Sigma drew attention in August when it agreed to acquire and hold tokens issued by World Liberty Financial, a crypto project backed by the Trump family.
The deal also brought Eric Trump on as a board observer and made World Liberty Financial an investor in the company.
Since then, Alt5 Sigma has struggled to meet its regulatory obligations, prompting concern among investors and regulators.
Auditor under review
In December, Alt5 Sigma named Victor Mokuolu CPA PLLC as its new auditor.
However, Texas records show the firm’s practice license expired in August and had not been renewed as of December 26.
Under state rules, the firm is prohibited from performing audit work until the license is reinstated.
Alt5 Sigma told the Financial Times that its auditor is undergoing a mandatory peer review under Texas State Board of Public Accountancy rules, with the review expected to conclude by the end of January 2026.
The company said it will not file an audit or review of its financial statements until the firm’s license is active.
While Victor Mokuolu renewed his individual certified public accountant license on August 31, the firm’s license remained inactive at year-end.
Past regulatory penalties
The audit firm has faced enforcement actions in the past.
In 2023, the Public Company Accounting Oversight Board fined Victor Mokuolu CPA PLLC $30,000 for failing to notify the regulator about 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 spent more than two years addressing deficiencies that resulted in an adverse peer review opinion in 2023.
Despite those issues, the firm disclosed 30 small-cap 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 gaps
Alt5 Sigma failed to file quarterly results for the period ended in September, putting it at risk of delisting from the Nasdaq.
The company attributed the delay in part to responsiveness and timing issues with its previous auditor, which formally resigned in November.
Governance issues have compounded the pressure.
Chief financial officer Jonathan Hugh, hired around the time of the Trump-linked deal, left after three months.
Chief executive officer Peter Tassiopoulos departed in October.
Board member David Danziger resigned last month, leaving Alt5 Sigma out of compliance with rules requiring an audit committee of a certain size and with accounting expertise.
Corporate changes and disclosures
Alt5 Sigma was formed in July 2024 when biotech company JanOne Inc. merged with Alt5 Sigma and adopted its name that month.
JanOne had relaunched in 2019 after previously operating as Appliance Recycling Centers of America.
The company says it provides infrastructure that allows financial institutions to integrate with digital assets.
As of December 8, it held about 7.3 billion $WLFI tokens, valued at roughly $1.1 billion.
Since August, its chairman has been Zack Witkoff, co-founder of World Liberty Financial and son of Steve Witkoff, who served as a special envoy for President Donald Trump on peace negotiations.
Alt5 Sigma also disclosed that its Canadian subsidiary and a former principal were found criminally liable by a Rwandan court in May for offenses including illicit enrichment and money laundering.
That verdict is under appeal, and both parties deny wrongdoing.