Alt5 Sigma, a fintech and crypto trading firm, has changed the structure of its agreement with World Liberty Financial (WLFI), the Trump‑affiliated decentralized finance startup, after discussions with Nasdaq about listing compliance.
Trump’s role revised
In early August, Alt5 Sigma announced a $1.5 billion capital raise tied to WLFI token purchases. As part of that deal, the company said Eric Trump would join its board of directors.
However, according to a Sept. 9 SEC filing, Trump will instead serve only as a board observer. WLFI co‑founder and chief operating officer Zak Folkman has been nominated as a director, subject to stockholder approval.
Alt5 gave no details on which listing rule was at issue, and Nasdaq declined to comment.
Why the change?
The SEC filing stated the amendment was made “after discussion with The Nasdaq Stock Market LLC (‘Nasdaq’), and in order to comply with Nasdaq’s listing rules.”
Forbes reported that three securities law professors it consulted could not identify exactly why Nasdaq rejected Eric Trump’s seat but accepted another nominee from WLFI. Nasdaq rules require a majority of independent directors, but it is unclear why Trump would fail that threshold while Folkman would qualify.
WLFI’s background and token performance
WLFI launched in September 2024 as a DeFi platform said to be “inspired by the vision of Donald J. Trump.” It introduced its non‑transferable $WLFI tokens soon after, initially priced at $0.015 and later at $0.05. Tokens give governance rights in protocol decisions but are not equity or asset‑backed.
Voting in July 2025 allowed early holders to begin selling a portion of their stakes, though founders, including Trump family LLCs, remain restricted.
As of Sept. 8, WLFI traded at approximately $0.2039, according to CoinGecko data. That is more than four times the early token price but about 38% below its recent high.
Alt5 Sigma holds around 7.3 billion WLFI tokens purchased at $0.18 per unit. At current valuations the stake is worth close to $1.5 billion, representing an appreciation of more than $200 million in under a month.
Ownership links
Filings show a Trump‑controlled LLC owns 38% of WLFI and 22.5 billion WLFI tokens. This ownership structure creates a deep financial link between WLFI’s performance and Trump family interests.
Legal challenges disclosed
The SEC filing also revealed several unrelated controversies for Alt5 Sigma:
- A Rwandan court found the firm’s Canadian subsidiary and its former principal, Andre Beauchesne, guilty of illicit enrichment and money laundering. The subsidiary was dissolved, $3.5 million seized, and Beauchesne sentenced to prison. Alt5 is appealing, saying it learned of the decision only in late August.
- U.S. trustees filed a bankruptcy‑related complaint tied to former CFO Virland Johnson, alleging he failed to disclose restricted stock units worth 330,000 shares in his January 2024 bankruptcy petition. Authorities are seeking recovery of the shares or their value. Alt5 disputes wrongdoing.
Market context
The arrival of a Trump‑branded DeFi platform coincides with a wider wave of political and celebrity involvement in crypto markets. WLFI’s early valuation surge, coupled with Alt5 Sigma’s $1.5 billion exposure, makes it one of the most high‑profile corporate bets on a non‑currency token.
Alex Shepel
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