Trump family-associated company ALT5 Sigma faces audit controversy again, potentially risking delisting

Nasdaq-listed company ALT5 Sigma, which has links to the Trump family crypto projects, has recently attracted heightened regulatory and market attention once again. An investigation revealed that the company’s newly appointed auditing firm’s license expired earlier this year, raising questions about its financial compliance and transparency in information disclosure.

ALT5 Sigma’s corporate transformation path has been quite turbulent, initially engaged in home appliance recycling, then shifting to biotechnology, and ultimately positioning itself as a crypto and fintech company. The company received backing from World Liberty Financial (WLFI), a crypto enterprise supported by the Trump family, but has repeatedly failed to publish quarterly financial reports on time, with issues gradually accumulating.

Reports indicate that to address the delay in financial reporting, ALT5 Sigma changed auditors this month, hiring Victor Mokuolu CPA PLLC, a smaller accounting firm based in Texas. However, regulatory filing documents show that the firm’s business license expired in August and has not yet been renewed. According to local regulations, the firm is not permitted to conduct audits until the license renewal is completed. Although the founder’s personal CPA license has been renewed, the company’s compliance issues remain unresolved.

ALT5 Sigma responded that it will not review or audit the company’s financial statements until the auditing firm’s license is restored and is undergoing peer review as required by regulators, expected to be completed by the end of January. However, historical records show that this firm has been penalized multiple times by regulators for compliance issues, including failing to submit audit reports to the Public Company Accounting Oversight Board (PCAOB) as required.

On the corporate governance front, issues are also prominent. Since early 2025, ALT5 Sigma’s stock price has fallen over 77%. After announcing plans to purchase and hold WLFI tokens as a core financial strategy, its financial structure and transparency of information disclosure have come under further scrutiny. Currently, the company faces delisting risk from Nasdaq due to failure to submit quarterly reports for September.

Additionally, changes in the board of directors have increased uncertainty. The resignation of key director David Danziger means the company no longer meets Nasdaq’s requirements for the professionalism and size of the audit committee. The planned addition of Eric Trump to the board has also been adjusted to serve only as an observer following regulatory review.

Overall, ALT5 Sigma is under multiple pressures simultaneously, including audit compliance, corporate governance, and market confidence. In the context of tightening crypto regulations, these issues not only impact its own prospects but may also have a lasting effect on the reputation of Trump family-related crypto projects.