Alt5 Sigma Faces SEC Probe Over Financial Disclosures and Leadership Issues

Alt5 Sigma, previously linked to former President Donald Trump's cryptocurrency initiative, World Liberty Financial, is now under intense scrutiny from the U.S. Securities and Exchange Commission. The regulatory body is investigating potential violations tied to financial reporting and executive disclosures.

A critical point of contention involves the resignation of the company's auditor, William Hudgens. Alt5 Sigma reported the resignation to the SEC on November 21, but Hudgens claims he notified the firm of his intent to step down before June 30. SEC regulations mandate that auditor resignations be disclosed within four business days, a requirement Alt5 Sigma may have breached. The company has yet to file its third-quarter report, citing delays attributed to its accountant—a claim met with skepticism given its refusal to identify the accountant in question.

Further complicating matters, Alt5 Sigma appears to have mishandled the reporting of CEO Peter Tassiopoulos' suspension. While official filings state he was placed on leave October 16, an internal memo suggests the action occurred as early as September 4. Federal rules require prompt disclosure of executive departures, including suspensions, adding another LAYER of regulatory risk for the embattled firm.

The unfolding situation raises significant concerns about corporate governance and transparency at Alt5 Sigma, with potential ramifications for investor confidence in the broader cryptocurrency sector.