Eric Trump Removed from ALT5 Board Following Nasdaq Compliance Review

Eric TRUMP has been removed from the board of directors at ALT5 Sigma, a digital asset firm, after discussions with Nasdaq Stock Market LLC. The change, disclosed in an SEC filing, was made to comply with the exchange's listing rules, though the specific rule violation remains unclear. Nasdaq requires a majority of board members to be independent, but the removal of Trump alone suggests other factors may be at play.

ALT5 Sigma announced plans in August to raise $1.5 billion through share sales, with proceeds earmarked for purchasing digital tokens from World Liberty Financial. As part of the deal, Eric Trump joined the board, alongside World Liberty Financial COO Zak Folkman as an observer. Folkman will now replace Trump as a director, pending shareholder approval.

The MOVE highlights the tightening regulatory scrutiny facing crypto-linked firms seeking mainstream financial market access. Nasdaq's intervention underscores the exchange's vigilance in enforcing governance standards, even as digital asset companies navigate an evolving compliance landscape.