- The company missed quarterly filing deadlines and faces a potential delisting from Nasdaq.
- Departures from the board and management have left Alt5 Sigma out of compliance with audit committee requirements.
- These issues emerged months after Alt5 Sigma committed to a Trump‑linked crypto token strategy.
Alt5 Sigma, a US‑listed crypto firm that struck a high‑profile deal with a Trump‑backed digital asset venture, is facing intensified regulatory and governance scrutiny following a series of audit, filing, and board disruptions, the Financial Times reported.
The company has not yet published its delayed financial results and is now working with an accounting firm whose firm license lapsed earlier this year.
The developments raise fresh questions about oversight of Alt5 Sigma just months after it agreed to hold large volumes of a politically linked crypto token.
Alt5 Sigma attracted attention in August when it agreed to acquire and hold tokens issued by World Liberty Financial, a crypto project supported by members of the Trump family.
The transaction also involved Eric Trump joining Alt5 Sigma as a board observer, while World Liberty Financial became an investor in the company.
Since then, Alt5 Sigma has struggled to meet its regulatory obligations, prompting concern among investors and regulators.
Auditor under scrutiny
In December Alt5 Sigma appointed Victor Mokuolu CPA PLLC as its new auditor.
However, filings in Texas show the firm’s corporate license to practice expired in August and had not been renewed as of 26 December.
Under state rules, the firm is prohibited from performing audit work until the license is reactivated.
Alt5 Sigma told the Financial Times that its auditor is undergoing a mandatory peer review process under the Texas State Board of Public Accountancy rules and that the review is expected to conclude by the end of January 2026.
The company said no audit opinion or review report on its financial statements will be issued until the auditor’s firm license is active.
While Victor Mokuolu renewed his individual certified public accountant license on 31 August, the firm’s license remained inactive at year end.
Past regulatory penalties
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 about audits of six public companies that were 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 rating in the profession’s 2023 peer review process.
Despite these issues, it listed 30 small‑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 has failed to file its quarterly results for the period ended in late September, putting it at risk of delisting from Nasdaq.
The company attributed the delay in part to the prior auditor’s speed and responsiveness; that auditor formally resigned in November.
Governance problems have added to the pressure.
Chief financial officer Jonathan Hugh, who was hired around the time of the Trump‑linked deal, left after roughly three months.
CEO 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 with accounting expertise.
Corporate changes and disclosures
Alt5 Sigma was formed in July 2024 when biotech company JanOne Inc. merged into Alt5 Sigma and took its name that month.
JanOne had previously rebranded in 2019 after operating as Appliance Recycling Centers of America.
The company says it provides the infrastructure that enables financial institutions to integrate with digital assets.
As of 8 December, it held approximately 7.3 billion $WLFI tokens with an implied value of about $1.1 billion.
Since August, Zack Witkoff, co‑founder of World Liberty Financial and son of developer Steve Witkoff, has served as chairman. Steve Witkoff was previously reported as President Donald Trump’s special envoy for peace negotiations.
Alt5 Sigma also disclosed that its Canadian subsidiary and a former executive were found criminally liable in May by a Rwandan court on charges of unlawful enrichment and money laundering.
That judgment is under appeal, and both parties deny wrongdoing.