ALT5 Sigma, a crypto-related company linked to the Trump family, is facing serious trouble after reports revealed problems with its new auditor.
The company recently hired a new accounting firm to handle its audits after missing the deadline to file its third-quarter financial report. But an investigation found that the firm’s license expired earlier this year, meaning it is not legally allowed to perform audit work right now.
Because of this delay, ALT5 Sigma is now at risk of being removed from Nasdaq.
The new auditor, Victor Mokuolu CPA PLLC, has a history of regulatory issues. While the founder renewed his personal CPA license in August, the firm itself remains unlicensed as of late December. Under state rules, the firm cannot issue any audit reports until the license is fully active again.
ALT5 Sigma said no audits or financial reviews will be released until the firm completes a required peer review, which is expected by the end of January.
This is not the first time the accounting firm has faced problems. Regulators previously fined it for missing deadlines and failing to properly report audits of public companies. Both Texas regulators and a federal oversight board took action against the firm in recent years.
Meanwhile, ALT5 Sigma’s situation keeps getting worse. The company’s stock is down more than 77% so far this year. Investors have grown uneasy, especially after the company announced plans to buy and hold WLFI tokens as part of its core strategy.
The company is also dealing with leadership issues. A board member with accounting experience recently resigned, leaving ALT5 Sigma out of compliance with rules that require a qualified audit committee. There have also been questions about inconsistent timelines in its filings related to the departure of its previous auditor.
Eric Trump, who was expected to join the board as part of the company’s partnership with World Liberty Financial, will no longer take that role. After a review with Nasdaq, he will instead act only as a board observer.
With delayed financial reports, auditor concerns, and falling share prices, ALT5 Sigma remains under heavy scrutiny as it tries to stabilize its business and stay listed on Nasdaq.
