MarketsAltcoinsTrump
|4 min ReadTrump's Crypto Partner Implodes
Tariq Al-Saidi
Senior Analyst
Published
Jan 16, 2026
The financial plumbing behind the Trump family's crypto ambitions is leaking.
Alt5 Sigma, a self-proclaimed fintech pioneer and major holder of the Trump-backed World Liberty Financial (WLFI) token, is in a state of operational chaos.
Reports from the Financial Times reveal a company in freefall.
Alt5 Sigma fired its auditor on Christmas Day. The reason? The firm, Victor Mokuolu CPA, had an expired license.
This marks the third auditor change in just six weeks.
The company missed its Q3 financial filing deadline. Nasdaq is threatening delisting.
This is not just a paperwork error; it is a systemic failure of governance.
The Audit Circus
The details of the audit failure are damning.
Victor Mokuolu CPA PLLC, hired earlier this month, had its Texas license expire in August. The firm was legally prohibited from conducting audits.
This was not a clean firm.
PCAOB Fine: The firm was fined $30,000 in 2023 for failing to report audit work.
Texas Fine: Fined another $15,000 for similar violations.
Peer Review: The firm received a "Fail" rating in its 2023 industry peer review.
Alt5 Sigma hired a failing, unlicensed auditor to oversee a balance sheet holding billions in crypto assets. They have now pivoted to a fourth option, LJ Soldinger Associates, to clean up the mess.
The $1.1 Billion Liability
This matters because Alt5 Sigma is deeply embedded in the Trump crypto ecosystem.
In August, the company struck a deal with World Liberty Financial.
The Bag: Alt5 holds 7.3 billion WLFI tokens, with a paper value of $1.1 billion.
The Board: Eric Trump sits as a board observer. Zack Witkoff (WLFI co-founder) is the Chairman.
If Alt5 Sigma is delisted or collapses, the custody of a significant portion of the WLFI supply is at risk.
The Executive Exodus
The insiders are fleeing.
The turnover in the C-Suite suggests leadership has lost confidence in the ship.
CFO: Jonathan Hugh resigned after just three months.
CEO: Peter Tassiopoulos left in October.
Board: Director David Danziger resigned last month, leaving the audit committee in violation of Nasdaq rules regarding size and expertise.
From Fridges to Crypto: A Sketchy Pivot
Alt5 Sigma fits the profile of a classic "chameleon" stock. Its corporate history is a red flag checklist of trendy pivots:
1. Phase 1: Appliance Recycling Centers of America (Recycling fridges).
2. Phase 2: JanOne (Biotech claiming to cure opioid addiction).
3. Phase 3: Alt5 Sigma (Fintech holding Trump's crypto).
Adding to the risk profile, the company disclosed in August that its Canadian subsidiary and a former executive were convicted of money laundering by a Rwandan court. The case is under appeal, but the reputational damage is permanent.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.