Trump-Backed Crypto Firm Alt5 Sigma Faces Audit Questions

ALT5 Sigma, a crypto company listed on Nasdaq and connected to the Trump family, is facing renewed scrutiny after reports raised concerns about its financial reporting and the qualifications of its recently appointed auditor.

The company recently failed to file its quarterly financial results for the period ending in September, putting it at risk of being delisted from Nasdaq. To address the delay, ALT5 Sigma switched auditors earlier this month, appointing Victor Mokuolu CPA PLLC, a small Texas-based accounting firm.

However, state records cited by the Financial Times show the firm’s license expired in August and had not been renewed as of December 26.

While the firm’s Founder, Victor Mokuolu, renewed his personal certified public accountant license on August 31, the firm itself remains barred from conducting audit work until its license is reinstated. ALT5 Sigma told the Financial Times that no audit or review of its financial statements will be issued until the firm completes a mandatory peer review, expected by the end of January 2026.

Auditor’s murky regulatory history

The newly appointed auditor has a record of regulatory issues. It failed an industry peer review in 2023 and has spent more than two years working to address deficiencies identified during that process.

The company faced repeated government regulation penalties, including a $30,000 fine from the Public Company Accounting Oversight Board in 2023 and a $15,000 penalty from the Texas State Board of Accountancy in 2024, for failure to make necessary filings.

Market pressure and governance challenges

ALT5 Sigma’s difficulties extend beyond its auditor. According to Yahoo Finance, the company’s shares, ALTS, have fallen more than 75% this year, reflecting growing investor concern. Governance issues have also emerged after the resignation of a board member, leaving the company without a fully compliant audit committee.

The company has drawn attention since August, when it announced a partnership with World Liberty Financial, a Trump family-backed crypto venture.

As part of the agreement, ALT5 Sigma committed to holding large amounts of the venture’s $WLFI token as part of its treasury strategy, and the Trump-linked entity became an investor in the company. Eric Trump, who was initially expected to join the board, now serves only as a board observer following discussions with Nasdaq.

Company background and legal disclosures

ALT5 Sigma has undergone multiple business transformations over the years. It was incorporated in July 2024 when biotech firm JanOne Inc. merged with Alt5 Sigma and adopted its name. JanOne had previously rebranded in 2019 from Appliance Recycling Centers of America before shifting into biotech.

Today, ALT5 Sigma describes itself as a fintech company focused on digital asset infrastructure. As of December 8, it reported holding around 7.3 billion $WLFI tokens, valued at about $1.1 billion. Since the World Liberty Financial deal, the company has been chaired by Zack Witkoff, a co-founder of the Trump-backed venture.

The company has also disclosed legal issues tied to its international operations. In August, ALT5 Sigma said its Canadian subsidiary and a former executive were found criminally liable by a Rwandan court on charges including illicit enrichment and money laundering. 

Both have denied the allegations and appealed the ruling, with the case currently under review by Rwanda’s High Court.

Also Read: Vitalik Buterin Slams EU Digital Services Act “No-Space” Approach

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