ALT5 Sigma Denies SEC Probe Rumors as Stock Plummets 10% - Here’s What You Need to Know

ALT5 Sigma slams the door on SEC investigation whispers—just as their stock tanks double digits.

Market Mayhem

Rumors swirled faster than a crypto bull run. Allegations of regulatory scrutiny hit trading floors. Then—corporate pushback. ALT5 Sigma's denial cut through the noise like a blockchain confirmation.

Numbers Don't Lie

10% drop. No recovery in sight. Investors scrambled while shorts circled—another day in regulated crypto where the only thing more volatile than prices is regulatory sentiment.

Finance's favorite circus continues: watch regulators chase innovation while traders chase exits.

SEC filing shows consulting role

SEC records, however, indicate Isaac had an official role with ALT5 despite his public denials. According to a December filing, ALT5 brought Isaac on under a two-year consulting agreement starting in March 2024.

As part of the agreement, Isaac was expected to advise on growth strategy, financial restructuring, client acquisition, and product development, with weekly update calls to management.

The filing added that Isaac’s consulting agreement included a $540,000 promissory note.

He subsequently converted the note, plus the interest it had accrued, into 465,753 ALT5 Sigma shares in December that year.

The conflicting narratives, however, managed to rattle ALT5 shareholders. ALT5’s shares fell 10.5% on Tuesday to $10.48, according to Yahoo Finance data, and slipped further in after-hours trading to $5.39.

ALT5’s Trump ties raises questions

For ALT5, its relationship with the Trump family has been a talking point within political circles.

After the August funding round, Eric Trump joined the company’s board and elevated WLFI co-founder Zach Witkoff to chairman. The arrangement left ALT5 holding about 7.5% of the WLFI token supply and tied the company’s balance sheet to the Trump family’s crypto venture.

Democratic lawmakers, including Elizabeth Warren and Alexandria Ocasio-Cortez, have argued that the partnership raises questions about conflicts of interest and potential self-dealing and have called for closer examination of the Trump family’s crypto businesses, especially its ties to ALT5.