Alt5 Sigma is getting new attention after mixed-up dates in its SEC filings raised questions about when the company really learned its independent accountant had quit.
The company told the SEC on Black Friday that it found out on Nov. 21 that its accountant, William Hudgens, had resigned “effective immediately.”
But Forbes later reported something very different: Hudgens said he told Alt5 Sigma before June 30 that he was stepping away from auditing public companies — and that he would do no work beyond the second quarter. That second-quarter report was filed on Aug. 12.
Alt5 Sigma still hasn’t filed its third-quarter numbers. In a Nov. 12 SEC notice, the company blamed the delay partly on slow responses from its accountant. When Forbes asked who was actually reviewing the financials at that point, the company wouldn’t say.
Public companies must alert the SEC within four business days when an auditor resigns. Because the dates don’t match — and the quarterly report is late — legal experts say regulators may want a closer look.
More date issues with management changes
This isn’t the first time Alt5 Sigma’s timeline has looked unclear. The company said in an SEC filing that its CEO, Peter Tassiopoulos, was suspended on Oct. 16.
But an internal email sent to staff on Sept. 4 — six weeks earlier — said he was already on temporary leave while a special committee reviewed undisclosed issues. That same message said chief revenue officer Vay Tham was also placed on leave.
Legal experts told Forbes that inaccurate filings can break securities laws, though proving intent can be tough. These latest leadership updates were released right before Thanksgiving.
Alt5 Sigma also told the SEC that it fired acting CEO and CFO Jonathan Hugh without cause, ended the consulting deal of COO Ron Pitters, accepted the resignation of board member David Danziger, and dissolved the special committee after it finished its review.
Trump-linked crypto deal adds more pressure
Alt5 Sigma’s ties to World Liberty Financial — a company connected to Donald Trump’s circle — have shaped much of its recent activity and public attention.
Back in August, Alt5 Sigma agreed to raise $1.5 billion to create a treasury of WLFI tokens. Half of that came in the form of WLFI tokens priced at 20 cents each. The rest came through a stock offering. The deal gave World Liberty Financial major influence inside Alt5 Sigma.
Zach Witkoff became board chair, while Eric Trump and Zak Folkman were given director and observer roles. Some adjustments were later made after discussions with Nasdaq. A Trump-affiliated group now holds around 22.5 billion WLFI tokens and receives about 75% of the money from token sales.
Alt5 Sigma’s balance sheet now includes roughly $1.1 billion worth of WLFI tokens on paper — more than five times the company’s own market value. Since the deal was announced, the company’s stock has dropped about 80%.
Alt5 Sigma declined to comment on any of the timeline issues, internal reviews, or accounting questions. Regulators haven’t said anything either, leaving open the possibility that these disclosure problems could bring more scrutiny in the weeks ahead.
