Trump-family-linked crypto company ALT5 Sigma has become embroiled in controversy after an investigation revealed that the license of its newly appointed auditor lapsed earlier this year.
Summary
- ALT5 Sigma appointed a new auditor whose firm is currently barred from performing audits due to an expired license.
- It faces Nasdaq delisting risk after failing to file its Q3 financial report by the required deadline.
Nasdaq-listed ALT5 Sigma, the former appliance recycling business turned biotech firm turned fintech venture, which has been backed by the Trump family’s crypto venture World Liberty Financial, has failed to produce its quarterly financial results on time.
To address the delay, it switched auditors this month to a little-known accounting firm that has previously failed an inspection under the industry’s peer review process and has been fined by accounting regulators, the Financial Times reported on Monday.
The firm, Victor Mokuolu CPA PLLC, which will now handle the company’s audits, is currently operating without an active license that expired in August, the report said, citing filings from its home state of Texas.
As such, it is barred from performing audit work until the license is renewed under state regulations.
Although Victor Mokuolu, the firm’s founder, renewed his personal certified public accountant license on Aug. 31, the firm’s license remained inactive as of Dec. 26, the report said.
“No reviews or audits of Alt5’s financial statements will be issued by our auditor until the firm’s license is active,” Alt5 Sigma told FT, adding that the firm is currently undergoing a peer review per Texas State Board of Accountancy regulations, which is expected to be completed by the end of January.
According to the report, the firm had previously failed to meet regulatory deadlines, prompting action from the Texas State Board of Public Accountancy and another U.S. regulator after it repeatedly failed to file required paperwork on time.
The firm was also fined by the Public Company Accounting Oversight Board in 2023 for failing to inform the regulator of six public company audits within the required timeframe, and additional penalties were imposed by the Texas board in 2024 for similar violations.
ALT5 Sigma shares have dropped over 77% since the start of 2025 as it continues to navigate a period of crisis and investor unease.
ALT5 Sigma Corp share price | Source: Google Finance
Since announcing its controversial agreement to buy and hold WLFI tokens as a core part of its financial strategy, the firm’s reporting has only grown more opaque.
Currently, it faces the risk of being delisted from Nasdaq after failing to file its quarterly results for the period ending September.
Meanwhile, board member David Danziger, who joined around the time of the WLFI deal, has resigned, putting the company in violation of a requirement to have an audit committee with sufficient accounting experience and size.
Earlier this month, the company was criticized after conflicting timelines in its SEC filings raised questions about how and when it disclosed the resignation of its previous auditor.
Eric Trump, who was slated to join the board of Alt5 Sigma as part of its partnership with World Liberty Financial, was also sidelined from that role after a review with Nasdaq and will now serve only as a board observer.
Source: https://crypto.news/trump-family-linked-alt5-sigma-draws-renewed-scrutiny/
