ALT5 Sigma dismisses SEC probe rumors over $1.5B WLFI deal
ALT5 Sigma has rejected claims that the US Securities and Exchange Commission (SEC) is investigating the firm or venture capitalist Jon Isaac. The rumors stemmed from ALT5’s recent $1.5 billion transaction with World Liberty Financial (WLFI), a crypto initiative tied to the Trump family.
In a statement posted on X, ALT5 stressed that Isaac has never been the company’s president or advisor. The firm also said it has not been contacted by the SEC regarding any probe.
Isaac likewise denied being under investigation, calling the allegations in media reports “factually inaccurate.”
Reports of a possible SEC review coincided with a sharp drop in ALT5 stock. By early Wednesday morning, shares were trading at $5.48, down from the previous day’s close of $6.55. Daily trading volume surpassed 15 million shares.
ALT5 and WLFI finalized their $1.5 billion registered direct offering last week. As part of the agreement, WLFI will allocate around 7.5% of its token supply to ALT5’s treasury. Following the deal, WLFI co-founder Zach Witkoff became chairman of ALT5’s board, while Eric Trump joined as a director.
SEC filings also show that Isaac signed a two-year consulting contract with ALT5 in March 2024 to provide strategic and business development advice. The documents further reveal that in December 2024, he converted about $540,000 worth of notes into 465,753 ALT5 shares.
The companies marked the closing of the deal at Nasdaq’s MarketSite on August 13, highlighting the adoption of WLFI’s treasury strategy. Neither ALT5 nor Isaac has acknowledged any ongoing SEC investigation, and the regulator itself has not issued a public statement.
Reports of a possible SEC review coincided with a sharp drop in ALT5 stock. By early Wednesday morning, shares were trading at $5.48, down from the previous day’s close of $6.55. Daily trading volume surpassed 15 million shares.
ALT5 and WLFI finalized their $1.5 billion registered direct offering last week. As part of the agreement, WLFI will allocate around 7.5% of its token supply to ALT5’s treasury. Following the deal, WLFI co-founder Zach Witkoff became chairman of ALT5’s board, while Eric Trump joined as a director.
SEC filings also show that Isaac signed a two-year consulting contract with ALT5 in March 2024 to provide strategic and business development advice. The documents further reveal that in December 2024, he converted about $540,000 worth of notes into 465,753 ALT5 shares.
The companies marked the closing of the deal at Nasdaq’s MarketSite on August 13, highlighting the adoption of WLFI’s treasury strategy. Neither ALT5 nor Isaac has acknowledged any ongoing SEC investigation, and the regulator itself has not issued a public statement.
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