Eric Trump Ousted From Alt5 Sigma Board Following Nasdaq Scrutiny—Crypto Treasury Firm Shakeup

Nasdaq compliance review forces boardroom purge at crypto treasury firm—Eric Trump gets the boot from Alt5 Sigma's leadership.

Regulatory Heat Intensifies

Public exchanges aren't playing nice with crypto adjacents anymore. When Nasdaq starts asking questions, even Trump names get shown the door. No room for ambiguity when regulators come knocking.

Corporate Governance Cleanup

Publicly-listed entities face brutal scrutiny—especially those dabbling in digital assets. Alt5 Sigma's move screams damage control. Cutting high-profile ties fast when exchanges raise eyebrows? Standard operating procedure in this compliance-obsessed era.

Finance's Ironic Twist

Nothing cleans up a board faster than the threat of delisting. Because when your stock's listing is on the line, even political royalty becomes expendable. Welcome to modern finance—where reputation risks get axed faster than a bad trade.

TLDR

• Eric Trump demoted to board observer at Alt5 Sigma after Nasdaq compliance review.
• Alt5 Sigma faces legal action over its dissolved Canadian subsidiary in Rwanda.
• Zak Folkman to replace Eric Trump as Alt5 Sigma director, pending shareholder approval.
• Alt5 Sigma holds $1.5B in WLFI tokens, bought at $0.18, now up $200M in value.

Eric TRUMP will no longer join the board of fintech firm Alt5 Sigma, following a compliance review by Nasdaq. The firm had previously named Trump as a board member after a major $1.5 billion treasury deal with World Liberty Financial (WLFI), which he co-founded. The company has since revised its leadership plan amid ongoing legal issues and corporate governance challenges.

Nasdaq Review Leads to Boardroom Reversal

Alt5 Sigma, which manages crypto-related financial services, disclosed through an SEC filing that Eric Trump’s planned board seat has been withdrawn. Instead, he will now serve only as a board observer. The decision followed consultations with Nasdaq about listing rule compliance, though the filing did not specify the exact regulation in question.

Trump was originally set to become a board director as part of a partnership agreement with World Liberty Financial, a decentralized finance firm launched in 2024. However, Alt5 Sigma now plans to install Zak Folkman, a co-founder of WLFI, as the new board director. His appointment remains subject to shareholder approval.

The revised leadership structure was confirmed just weeks after Alt5 Sigma announced a $1.5 billion treasury deal with WLFI. The deal involved the acquisition of 7.3 billion $WLFI tokens by Alt5 Sigma. Despite the change, the company’s official website continued to list Trump as a director at the time of reporting.

Alt5 Sigma Faces Global Legal and Governance Problems

Alt5 Sigma is currently facing multiple legal and governance challenges across jurisdictions. According to the same SEC filing, a Rwandan court dissolved the firm’s Canadian subsidiary. The court also sentenced its former principal, Andre Beauchesne, for illicit enrichment and ordered the seizure of $3.5 million in assets.

The company stated that its current board only became aware of the legal ruling in late August. The matter has added to ongoing scrutiny of Alt5 Sigma’s internal governance structure. The company did not issue a public comment, and neither did Nasdaq, Eric Trump, or World Liberty Financial.

Additionally, Alt5 Sigma is dealing with a legal dispute involving its former Chief Financial Officer, Virland Johnson. U.S. bankruptcy trustees allege that Johnson failed to report restricted stock units during his personal bankruptcy case. Trustees are seeking to recover 330,000 shares, though Alt5 Sigma has contested the claims in court filings.

Trump-Linked WLFI Sees Surge Despite Leadership Shakeup

World Liberty Financial launched in September 2024 with backing from Donald Trump and his sons. It introduced $WLFI tokens at an early price of $0.015. By early September 2025, the token value reached $0.2092, marking over a 1,000% increase from its initial price.

Alt5 Sigma acquired 7.3 billion of these tokens at $0.18 each. These holdings are now worth around $1.5 billion, reflecting a $200 million rise in less than one month. A Trump-affiliated LLC also holds 22.5 billion tokens and controls about 75% of all token sale proceeds.

The firm did not provide reasons for why Nasdaq might have opposed Trump’s board seat. Legal analysts reviewing the filing noted the lack of clear justification but said Nasdaq has broad discretion when reviewing board appointments. There has been no confirmation if any investigation is ongoing.

Both Alt5 Sigma and WLFI have not issued statements addressing the boardroom changes or ongoing legal matters. As of now, Eric Trump remains a board observer, without voting rights or formal control over decisions made by Alt5 Sigma’s leadership.