Trump Crypto Partner ALT5 Sigma’s SEC Rules Violation

ALT5 Sigma, the crypto venture partnered with Trump Family World Liberty Financial, has recently informed the Securities and Exchange Commission (SEC) about its CEO,  Peter Tassiopoulos’s suspension, effective October 16, 2025. However, what sparked speculations is an internal email showing that the board placed him on “temporary leave” from September 4, long before his suspension. Although there has been no public confirmation of the SEC conducting a Trump crypto partner investigation, the revelation is under intense scrutiny from legal experts. It is also raising questions about the company’s disclosure practices.

This write-up discusses the recent misconduct of the Trump-connected crypto venture and how this incident impacts their circular deal with the Trump-founded financial institution.

World Liberty Financial: A Trump-Owned Financial Institution

World Liberty Financial (WLF), a next-generation financial platform, is built to bridge the gap between traditional banking and blockchain-powered innovation. The firm combines the stability, familiarity, and trust of legacy finance with the accessibility and transparency of decentralized systems. With a modern approach to money management, lending, and digital asset management, this financial firm is changing the future of finance.

Built on the pillars of supporting dollar-backed stability in the digital economy, simplifying decentralized finance (DeFi) for wide adoption, and making capital accessible to institutions and users, WLF enables global, secure, and trustworthy digital transactions. U.S. President Trump and some of his family members own 38% of WLF’s holding company, ALT5 Sigma. Donald Trump, Eric Trump, Donald Trump Jr., and Barron Trump are some of the co-founders of WLF.

Donald Trump Jr. and Eric Trump are also Executive Vice Presidents of The Trump Organization, managing different business areas. Junior Donald Trump is committed to expanding the company’s retail, real estate, commercial, golf, and hotel interests. On the other hand, Eric Trump oversees the vast global real estate portfolio and steers its strategic growth across commercial, luxury hospitality, residential, blockchain-based, and golf ventures.

ALT5’s Strategic Partnership with World Liberty Financial

ALT5’s strategic partnership with WLF allowed the company to sell $1.5 billion in shares and purchase WLFI crypto tokens issued by World Liberty. However, due to the fall in crypto prices, this strategy came under threat. According to LSEG data, this fall, ALT5’s share price declined by 72% since the Trump sons rang the Nasdaq opening bell. On November 26, 2025, ALT5’s shares soared about 7% after World Liberty bought back some of its outstanding crypto tokens.

ALT5’s Firing of Executives: A News that Alarmed SEC

ALT5 disclosed the news of its firing of leaders in a filing to the Securities and Exchange Commission on November 26. The firm announced the dismissal of Jonathan Hugh, the Chief Financial Officer and the Acting CEO, and Ron Pitters, the Chief Operating Officer. However, Pitters and Hugh did not immediately comment on their dismissal.

In the filing, ALT5 mentioned that Hugh was removed from his role of acting CEO “without cause.” The firm did not describe any misconduct concerning the firings. ALT5 Sigma, Eric, and Donald Trump Jr. also did not immediately respond to the request for comment. David Wachsman, a spokesperson from World Liberty, commented, “World Liberty Financial is excited about the future for Alt5.”

An old filing of August 29 mentioned that ALT5’s board had been made aware of a Rwandan court in May, which found one of the firm’s subsidiaries and a former executive criminally liable for offenses, including money laundering and illicit enrichment. However, they were appealing the decision and commented that the subsidiary itself was “the victim of fraud.” ALT5’s stock is highly influenced by the rises and falls in the underlying crypto asset. With a circular crypto deal linked to Trump,  this news has also put Trump under speculation, along with ALT5 Sigma. 

ALT5 Sigma Faces Nasdaq Delisting: Another Trouble for the Crypto Venture

ALT5 Sigma encountered another mishap when Nasdaq placed the company on its list of “non-compliant companies.” According to Nasdaq, the firm has failed to file a report for the third quarter of 2025 with the SEC. As reported by Forbes, soon after this move by Nasdaq, ALT5 issued a press release on December 2 stating that Nasdaq had sent the company a letter notifying it that it “no longer meets the continued listing requirements” for its failure to submit the report.

According to the firm, under Nasdaq’s rules, ALT5 Sigma has the time to submit a plan “outlining its strategy to regain compliance” until January 20, 2026. It further mentions that if Nasdaq approves the plan, it may receive an extension of up to 10 calendar days from the original deadline to get back into compliance. 

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