ALT5 Sigma is under investigation for timing discrepancies related to information disclosure; CEO has been suspended.

ALT5 Sigma reserve company, a partner of the cryptocurrency project “World Liberty Financial” (WLFI) related to the Trump family, is currently facing serious regulatory compliance issues with the SEC. The United States Securities and Exchange Commission (SEC) is reviewing whether this company has violated mandatory disclosure standards.

Time discrepancy raises concerns

According to official filings by ALT5 Sigma submitted to the SEC, the company’s CEO was suspended on October 16. However, internal emails discovered show that the board of directors made the decision to suspend work earlier—specifically from September 4. This time gap extends over a month, creating a significant discrepancy in disclosure.

Consequences of regulatory violations

Securities law experts state that this large difference could constitute a direct violation of SEC regulations. Under current standards, publicly listed companies are required to disclose material changes within four trading days via Form 8-K. If a company intentionally files or provides false or misleading information, this action could violate the agency’s anti-fraud regulations.

An additional development revealed in company emails is that the Revenue Director of Loans, Vay Tham, was also suspended during the same period, according to a special committee of the board of directors. This committee is investigating internal issues within ALT5 Sigma.

Large-scale financial issues

In August, ALT5 Sigma conducted a circular transaction valued at $1.5 billion using WLFI tokens. Analysis shows that approximately $500 million from this investment was ultimately transferred to organizations related to President Trump. The large scale of this money, combined with disclosure errors, has increased SEC concerns about the company.

The combination of disclosure compliance issues and complex financial activities has placed ALT5 Sigma under regulatory scrutiny, requiring the company to clearly explain its decisions and disclosure schedules.