Trump-Linked Crypto Firm Alt5 Sigma Faces Audit Crisis and Delisting Threat
A US-listed cryptocurrency venture with ties to the Trump family is embroiled in a deepening crisis, stemming from a lapsed auditor license and a failure to file financial results. The situation raises serious questions about the financial stability and oversight of Alt5 Sigma, a company that has undergone multiple rebrandings and now finds itself under scrutiny from regulators and investors alike.
Alt5 Sigma, originally a Las Vegas-based recycling business that pivoted to biotech and then blockchain technology, signed a deal in August to acquire crypto tokens issued by World Liberty Financial, a venture connected to the Trump family. Eric Trump joined the company’s board as an observer following the agreement. However, the company’s financial standing has become increasingly unclear since then.
The firm failed to submit its quarterly results on time and subsequently switched auditors this month to Victor Mokuolu CPA PLLC. This move, however, has only amplified concerns, as the newly appointed firm has a history of regulatory issues and recently faced a critical setback: its license to practice expired in August. According to filings with the Texas State Board of Accountancy, Victor Mokuolu CPA PLLC is currently prohibited from performing audit work until the license is reinstated.
While Victor Mokuolu, the firm’s founder, renewed his individual CPA license on August 31, his firm’s license remained inactive as of December 26, board records indicate. Alt5 Sigma acknowledged the situation in a statement to the Financial Times, stating that its auditor is “undergoing a peer review per Texas State Board of Accountancy regulations and will be completed by the end of January 2026, at which point the auditor expects the firm’s license to be active.” The company added that “no reviews or audits of Alt5’s financial statements will be issued by our auditor until the firm’s license is active.” Attempts to reach Mokuolu for comment were unsuccessful.
The firm’s troubled history extends beyond the license lapse. Victor Mokuolu CPA PLLC has been working for over two years to address deficiencies identified in a 2023 peer review process, which resulted in a failing grade. Prior to this, both the Texas State Board of Public Accountancy and another US regulator took action against the firm for repeated failures to file regulatory paperwork on time. In 2023, the Public Company Accounting Oversight Board (PCAOB) fined the firm $30,000 for failing to report six public company audits within the required 35-day timeframe. The Texas board levied an additional $15,000 penalty for the same violations.
The appointment of Victor Mokuolu CPA PLLC on December 8 occurred during a period of significant upheaval for Alt5 Sigma, which now describes itself as “a fintech with a pioneering $WLFI digital asset treasury strategy.” The August agreement with the Trump family’s World Liberty Financial committed the company to purchasing and holding substantial quantities of the $WLFI token, simultaneously making the Trump venture an investor in Alt5 Sigma.
Adding to the instability, Jonathan Hugh, the chief financial officer brought on board during the Trump deal, departed after only three months. Peter Tassiopoulos, the company’s chief executive, also left in October, and board member David Danziger resigned last month. Danziger’s departure has put the company in violation of Nasdaq requirements regarding the size and expertise of its audit committee.
The company is now facing the threat of delisting from Nasdaq after failing to file its quarterly results for the period ending in late September. Alt5 Sigma attributed the delay, in part, to the “timeliness and responsiveness” of its previous auditor, who formally resigned in November.
Alt5 Sigma’s origins trace back to July 2024, when a biotech company called JanOne Inc. incorporated it. JanOne had previously focused on developing solutions for the opioid epidemic. Prior to that, JanOne was known as Appliance Recycling Centers of America, rebranding in September 2019. As of December 8, Alt5 Sigma held approximately 7.3 billion $WLFI tokens, valued at around $1.1 billion.
Zack Witkoff, co-founder of World Liberty Financial and son of Steve Witkoff, President Donald Trump’s special envoy for peace negotiations, has served as Alt5 Sigma’s chair since the August deal.
Further complicating matters, Alt5 Sigma disclosed to US regulators in August 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.” Alt5 Sigma Canada and Andre Beauchesne have appealed the judgment to the High Court of Kigali, Rwanda, maintaining their innocence and claiming they were victims of fraud. The matter remains under judicial review.
The confluence of these issues – a questionable audit firm, executive departures, regulatory scrutiny, and legal challenges – paints a concerning picture for Alt5 Sigma and its investors, raising serious doubts about the company’s future viability.
