Trump-Linked Crypto Firm ALT5 Sigma Under Fire: Unlicensed Auditor Sparks Regulatory Scrutiny
Another day, another crypto compliance headache—this time with political connections.
ALT5 Sigma, a cryptocurrency firm linked to former President Donald Trump's orbit, faces mounting regulatory pressure. The Financial Times reports the company's auditor lacks proper licensing, raising red flags across compliance departments.
The Auditor Problem
Regulators hate unlicensed oversight almost as much as traders hate bear markets. Using an unqualified auditor isn't just sloppy paperwork—it undermines the entire trust framework crypto needs to attract institutional capital.
Political Crypto Gets Real
When political figures dip into digital assets, scrutiny follows. This isn't about blockchain technology's potential; it's about whether connected players think standard rules don't apply to them. Spoiler: regulators disagree.
The episode highlights crypto's growing pains—where legitimate innovation meets the age-old finance tradition of cutting corners until someone notices. Maybe next time, hire the auditor before the headlines.
ALT5 Sigma’s New Auditor Barred From Audits After Firm License Lapses
State filings cited by the FT show the firm’s license expired in August and had not been renewed as of late December, preventing it from conducting audit work under Texas regulations.
While founder Victor Mokuolu renewed his personal CPA license on Aug. 31, the firm itself remains inactive until the licensing process is completed.
ALT5 Sigma acknowledged the issue, telling the FT that no reviews or audits of its financial statements will be issued until the firm’s license is reactivated.
The company said its auditor is undergoing a mandatory peer review overseen by the Texas State Board of Accountancy, with completion expected by the end of January.
It has been a rough quarter for @ALT5_Sigma and $ALTS shareholders, with the stock down at 52wk lows amidst weakness in crypto sectors, late filings, and much needed leadership changes.
I call this the “drama discount”. You don’t get the discount without the drama. Without… pic.twitter.com/as5WH7Y0Vs
The episode adds to a growing list of compliance concerns surrounding ALT5 Sigma, which has undergone several strategic pivots in recent years, transitioning from an appliance recycling business to biotech and later to fintech and crypto.
The company is backed by World Liberty Financial, a Trump-family-linked crypto venture.
Regulatory records cited in the report indicate that Victor Mokuolu CPA PLLC has previously missed filing deadlines, drawing enforcement action from the Public Company Accounting Oversight Board and state authorities.
In 2023, the firm was fined for failing to notify regulators of multiple public company audits, with additional penalties imposed in 2024 for similar violations.
Nasdaq Delisting Risk Grows
ALT5 Sigma’s operational challenges are already weighing heavily on its stock. Shares are down more than 77% since the start of 2025, reflecting mounting investor unease as the company struggles to meet disclosure requirements.
The firm now faces potential delisting from Nasdaq after missing the deadline to file its quarterly report for the period ending September.
Governance concerns have also intensified following the resignation of board member David Danziger, leaving the company out of compliance with audit committee requirements related to size and accounting expertise.
Earlier this month, analysts and investors raised alarms over inconsistencies in the company’s SEC filings, particularly around the timing of its previous auditor’s resignation.
The situation was further complicated when Eric Trump, who was expected to join ALT5 Sigma’s board as part of its partnership with World Liberty Financial, was instead limited to an observer role following discussions with Nasdaq.
Last month, Alt5 Sigma also removed two top executives following concerns about long-running legal issues at the company.
