The U.S. Securities and Exchange Commission (SEC) has initiated an investigation into Alt5 Sigma, a cryptocurrency company that recently signed a $1.5 billion partnership deal with World Liberty Financial, a firm linked to former President Donald Trump. The probe specifically targets Alt5 Sigma's President and Chairman Jon Isaac, who is alleged to have engaged in suspicious financial activities including earnings inflation and stock manipulation.
According to reports from The Information, the SEC is examining whether Isaac and other senior executives artificially inflated the company's earnings and then sold their shares during subsequent stock price surges. The investigation focuses on transactions involving Alt5 Sigma, though the Trump family itself is not currently under scrutiny.
The timing is particularly notable given the Trump administration's well-documented stance against aggressive crypto enforcement. World Liberty Financial, a major Trump family crypto enterprise, has been actively investing in Web3 firms and recently closed the massive $1.5 billion deal with Alt5 Sigma to support a WLFI token strategy. The partnership was significant enough that both companies were invited to ring the Nasdaq bell together.
No formal charges have been filed yet, and World Liberty Financial has not responded to requests for comment. The situation remains fluid as regulators continue their examination.