Nasdaq-listed crypto infrastructure firm ALT5 Sigma is under intense regulatory scrutiny after a Financial Times report revealed its newly appointed auditor, Victor Mokuolu CPA PLLC, is currently barred from performing audits due to an expired firm license. The Texas-based accounting firm's license lapsed in August and had not been renewed as of late December, preventing it from conducting audit work under state regulations.
The auditor appointment comes as ALT5 Sigma struggles with multiple compliance issues, including missing its Q3 2025 financial filing deadline. The company acknowledged the licensing problem, stating "no reviews or audits of its financial statements will be issued until the firm's license is reactivated." Victor Mokuolu CPA PLLC is undergoing a mandatory peer review overseen by the Texas State Board of Accountancy, with completion expected by the end of January 2026.
The auditor has a history of regulatory penalties, including a $30,000 fine from the Public Company Accounting Oversight Board in 2023 for failing to notify regulators about six public company audits within the required 35-day period. The Texas State Board of Public Accountancy imposed an additional $15,000 penalty for repeated late filings.
ALT5 Sigma's operational challenges have triggered a 77% stock decline since the start of 2025, with shares hitting 52-week lows. The company now faces potential delisting from Nasdaq after missing the deadline to file its quarterly report for the period ending September 2025.
Governance concerns have intensified following the resignation of board member David Danziger, leaving the company out of compliance with Nasdaq audit committee requirements related to size and accounting expertise. The company has undergone significant leadership changes, including the departure of CFO Jonathan Hugh after three months and CEO Peter Tassiopoulos in October.
The company is backed by World Liberty Financial, a Trump-family-linked crypto venture. Eric Trump was expected to join ALT5 Sigma's board as part of its partnership with World Liberty Financial but was instead limited to an observer role following discussions with Nasdaq. The August deal committed ALT5 Sigma to buying and holding large amounts of World Liberty Financial's $WLFI token, with the company holding roughly 7.3 billion $WLFI tokens valued at about $1.1 billion as of December 8.
ALT5 Sigma has undergone several strategic pivots in recent years, transitioning from an appliance recycling business (formerly Appliance Recycling Centers of America) to biotech and later to fintech and crypto. The company was incorporated in July 2024 by JanOne Inc, which merged with ALT5 Sigma and adopted its name.
Adding to the company's troubles, ALT5 Sigma disclosed in August that its Canadian subsidiary and a former principal were found criminally liable by a Rwandan court in May for offences including illicit enrichment and money laundering. The case remains under judicial review after an appeal to the High Court of Kigali in June.
