AI Financial Corp., the public company formerly known as Alt5 Sigma, faces possible removal from the Nasdaq exchange after its stock fell to approximately 68 cents on Tuesday, down about 93% from a year ago, following a cryptocurrency transaction completed in 2025 with World Liberty Financial, a digital asset venture partially owned by members of President Donald Trump's family. The company's decline below key Nasdaq listing requirements has drawn regulatory scrutiny, with the Democracy Defenders Fund requesting a Securities and Exchange Commission review in April. The transaction involved AI Financial exchanging shares and warrants for roughly $750 million worth of World Liberty Financial's WLFI tokens and selling approximately $750 million in stock to outside investors, bringing total holdings to about $1.5 billion, with the Trump family entitled to 75% of proceeds from token sales.
AI Financial Stock Falls 93% Since Transaction
Shares of AI Financial Corp. closed at approximately 68 cents on Tuesday, hovering near a 52-week low and down about 93% from a year ago, according to reporting by The Independent. The stock decline has pushed the company below key Nasdaq listing requirements, creating the risk of removal from the exchange.
Don Jr. and Eric Trump joined AI Financial executives at the Nasdaq opening bell ceremony in August 2025 to celebrate the agreement between the company and World Liberty Financial.
A cryptocurrency transaction involving a company tied to President Donald Trump's family has drawn renewed scrutiny. AFP
Transaction Structure Totaled $1.5 Billion in Token Holdings
The transaction involved Alt5 Sigma exchanging company shares and warrants for roughly $750 million worth of World Liberty Financial's WLFI cryptocurrency tokens, according to CNBC. The company also sold approximately $750 million worth of stock to outside investors at $7.50 per share and used nearly all of those proceeds to acquire additional WLFI tokens, bringing the total value of the holdings to about $1.5 billion.
Because the Trump family is entitled to 75% of proceeds generated from sales of World Liberty Financial tokens, the Alt5 transaction likely produced roughly $500 million in gains for Trump-affiliated entities after fees and expenses.
World Liberty Financial was launched in 2024 and lists Donald Trump, Donald Trump Jr., Eric Trump and Barron Trump among its founders alongside Zach Witkoff and Alex Witkoff, sons of real estate developer and presidential adviser Steve Witkoff.
Democracy Defenders Requested SEC Review in April
The Democracy Defenders Fund, a watchdog organization critical of Trump, requested a review by the Securities and Exchange Commission in April. Former New Jersey Attorney General Matthew Platkin, who reviewed information related to the deal for Democracy Defenders, told CNBC that the situation contained "serious red flags" that he believed warranted regulatory scrutiny.
The SEC declined to comment on the matter, according to The Independent.
White House and Company Representatives Denied Conflicts of Interest
The White House disputed allegations of conflicts of interest. A White House spokesperson told The Independent that President Trump's assets are held in a trust managed by his children and said there were "no conflicts of interest."
A spokesperson for the Trump Organization told The Independent that neither Eric Trump nor Donald Trump Jr. had any involvement in AI Financial's operations, management decisions or board activities.
AI Financial also rejected suggestions of wrongdoing. A company spokesperson told CNBC that management remained focused on serving customers and creating long-term shareholder value while dismissing allegations surrounding the transaction as unfounded speculation.
FAQ
What transaction did AI Financial Corp. complete with World Liberty Financial?
AI Financial Corp., formerly known as Alt5 Sigma, exchanged company shares and warrants for roughly $750 million worth of World Liberty Financial's WLFI cryptocurrency tokens in 2025. The company also sold approximately $750 million worth of stock to outside investors at $7.50 per share and used nearly all of those proceeds to acquire additional WLFI tokens, bringing the total value of the holdings to about $1.5 billion.
Why did the Democracy Defenders Fund request an SEC review?
The Democracy Defenders Fund requested a Securities and Exchange Commission review in April after AI Financial's stock fell below key Nasdaq listing requirements following the transaction. Former New Jersey Attorney General Matthew Platkin, who reviewed information related to the deal for Democracy Defenders, told CNBC that the situation contained "serious red flags" that he believed warranted regulatory scrutiny.
How much did the Trump family earn from the AI Financial transaction?
Because the Trump family is entitled to 75% of proceeds generated from sales of World Liberty Financial tokens, the Alt5 transaction likely produced roughly $500 million in gains for Trump-affiliated entities after fees and expenses, according to reporting by CNBC.
