SEC Investigates Trump-Linked Crypto Firm Alt5 Sigma Over Alleged Fraud

The U.S. Securities and Exchange Commission has launched an investigation into Alt5 Sigma, a partner of the Trump family's World Liberty Financial, over potential fraudulent activities. The probe focuses on allegations of earnings inflation and stock manipulation tied to the firm's $1.5 billion deal with the crypto enterprise.

World Liberty Financial recently invited Alt5 Sigma to ring the Nasdaq bell following their major investment in Web3 ventures. The SEC's scrutiny of president Jon Isaac comes amid diminished enforcement capabilities during the TRUMP administration's contentious relationship with crypto regulators.

Market observers note the investigation's timing appears contradictory given the current administration's stance on digital asset oversight. Neither World Liberty Financial nor Alt5 Sigma immediately responded to requests for comment regarding the developing situation.