ALT5 Sigma denies SEC probe rumors over $1.5B Trump crypto deal

ALT5 Sigma rejected claims that the U.S. Securities and Exchange Commission (SEC) is investigating the company or venture capitalist Jon Isaac. The rumors centered on ALT5’s recent $1.5 billion deal with World Liberty Financial, a crypto project linked to the Trump family.

The company posted on X that Isaac has never been its president or advisor. ALT5 said it received no notice of any SEC inquiry. Isaac also denied being under investigation, calling media reports factually incorrect about his role and regulatory status.

According to earlier reports, the SEC was examining Isaac for allegedly inflating earnings and selling insider shares related to the WLFI financing deal. ALT5 shares dropped following the rumors, trading around $5.48 by early Wednesday morning after closing at $6.55 the previous day. Daily trading volume reached over 15 million shares.

ALT5 and WLFI announced the closing of their $1.5 billion registered direct offering last week. The deal involves WLFI holding about 7.5% of the total WLFI token supply as part of a treasury strategy. WLFI co-founder Zach Witkoff became ALT5’s board chairman and Eric Trump joined as a director.

SEC filings show Isaac entered a two-year consulting agreement with ALT5 on March 4, 2024, providing strategic and business development advice. The documents also reveal he converted approximately $540,000 in notes into 465,753 ALT5 shares on December 23, 2024.

Representatives from both companies appeared at Nasdaq’s MarketSite on August 13 to mark the transaction’s completion and adoption of the WLFI treasury plan.

ALT5 Sigma trades on Nasdaq and focuses on digital asset trading and payments. The WLFI partnership reshaped the company’s board structure and formalized ties with the Trump-affiliated crypto project.

Neither ALT5 nor Isaac has acknowledged any SEC investigation. The SEC has not issued public statements regarding the matter. The initial allegations appeared in media reports but lacked official confirmation from regulatory authorities.