Alt5 Sigma—the Nasdaq-listed company that pivoted from biotech to a “Digital Asset Treasury” earlier this year—has plunged into deeper turmoil after appointing, then quickly dismissing, an auditor whose licence in Texas lapsed and whose peer review performance has drawn regulatory scrutiny. The episode intensifies risks that the Trump-backed crypto treasury firm could be delisted from Nasdaq and raises fresh questions about its governance and financial transparency.
What happened
- In early December Alt5 Sigma named Victor Mokuolu CPA PLLC as its auditor (a controversial December 8 filing reported by the Financial Times). State records show that the firm’s Texas licence expired in August and had not been renewed as of Dec. 26, a lapse that legally prevents it from performing audits until reinstated.
- The accounting practice has a history of regulatory problems: it received a failing grade in the profession’s peer review process in 2023 and has been working for more than two years to address deficiencies. Texas regulators and another U.S. oversight body flagged the firm for “repeatedly failing to file regulatory paperwork on time.”
- After media inquiries, Alt5 fired the audit firm on Christmas Day and disclosed on Monday that it has since hired LJ Soldinger Associates as its new accounting firm.
Why this matters
- Alt5 has not filed timely quarterly financial results, leaving its balance sheet and financial position unclear. The company says delays were partly due to “timeliness and responsiveness” issues with its prior auditor, which quit last month.
- The auditor appointment misstep and missing filings expose Alt5 to potential Nasdaq delisting. The company also appears to be out of compliance with listing rules that mandate an adequately staffed audit committee with accounting expertise.
- Alt5’s statement to the Financial Times said the fired auditor “is undergoing a peer review per Texas State Board of Accountancy regulations and will be completed by the end of January 2026,” and that no audits or reviews of Alt5’s financials “will be issued by our auditor until the firm’s licence is active.”
Context and corporate shake-up
- Alt5 rebranded earlier this year as a Digital Asset Treasury Company aiming to accumulate WLFI, the token tied to World Liberty Financial (WLFI). In August, World Liberty Financial partnered with and invested in Alt5 as it sought to raise $1.5 billion to support a WLFI-based treasury strategy.
- Several World Liberty Financial co-founders joined Alt5’s board. High-profile names attached to the company included Eric Trump (initially a director but who stepped down in September weeks after his appointment) and Zach Witkoff (named chairman), son of Steve Witkoff, a Trump special envoy.
- The company has also seen rapid executive turnover: CFO Jonathan Hugh resigned after about three months, CEO Peter Tassiopoulos left in October, and board member David Danziger departed in November.
What to watch
- Whether the new auditor can be onboarded quickly and produce the overdue financials.
- Nasdaq’s response as the company remains delinquent on filings and lacks a full audit committee meeting exchange standards.
- Any further regulatory or investor reactions tied to Alt5’s WLFI accumulation plan and the involvement of World Liberty Financial and Trump-linked figures.
Bottom line: Alt5 Sigma’s bid to become a high-profile public crypto treasury has hit serious operational and governance snags. Missing financial reports, a botched auditor appointment, executive churn and the shadow of possible delisting make the company one to watch for investors and regulators alike.
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