Trump-Linked Crypto Firm ALT5 Sigma Faces Scrutiny Over Unlicensed Auditor and Regulatory Issues
ALT5 Sigma, a crypto firm linked to the Trump family, has come under scrutiny after appointing Victor Mokuolu CPA PLLC as its new auditor, despite the firm being barred from performing audits due to an expired license. The Texas-based firm's license expired in August and has not been renewed as of late December, preventing it from conducting audit work under Texas regulations. Although the auditor’s personal license was renewed on August 31, the firm itself remains inactive.
ALT5 Sigma has stated that no reviews or audits of its financial statements will be issued until the firm’s license is reactivated. The company also noted a mandatory peer review overseen by the Texas State Board of Accountancy is expected to be completed by the end of January.
This licensing issue follows broader compliance problems for ALT5 Sigma, including missing the Q3 filing deadline and moving to replace its previous auditor earlier this month. Regulators have previously fined the auditing firm for repeated reporting and filing violations, including 2023 fines for failing to notify regulators of multiple public company audits and penalties in 2024 for similar violations.
ALT5 Sigma faces the risk of being delisted from Nasdaq after missing the quarterly filing deadline. The stock has fallen over 77% since the start of 2025 and is near 52-week lows. Governance concerns have also emerged, including the resignation of board member David Danziger and questions about the audit committee’s size and expertise.
The firm is backed by World Liberty Financial, described as a Trump-family-linked crypto venture. Eric Trump was slated to join ALT5 Sigma’s board but was limited to an observer role following discussions with Nasdaq. Additionally, two top executives were removed amid ongoing legal issues. The Financial Times report highlights that ALT5 Sigma’s move to replace its auditor after failing to file its Q3 results by the required deadline signals ongoing governance and regulatory challenges for the company.
