Trump-linked crypto firm faces auditor probe as financial turmoil deepens

Alt5 Sigma faces an investigation after losing records and hiring an auditor whose license expired earlier this year. A Trump-linked crypto deal draws attention as regulatory loopholes and auditor fines raise surveillance concerns. Board exits, audit delays and legal disclosures threaten Alt5 Sigma Nasdaq delisting.

Alt5 Sigma, the US-listed crypto firm that struck its biggest deal with a Trump-backed digital asset venture, is facing growing regulatory and regulatory scrutiny after a series of audits, filings and board-level disruptions, the Financial Times reported.

The company has yet to publish financial results and is now working with an auditing firm whose license to practice expired earlier this year.

The events raised new questions about oversight at the company, months after it seized a large amount of politically-linked crypto tokens.

Alt5 attracted attention when Sigma agreed to buy and hold tokens issued in August World Freedom FinanceA crypto project backed by the Trump family.

The deal saw Eric Trump join Alt5 Sigma as a board observer, while Global Liberty Financial became an investor in the company.

Since then, Alt5 Sigma has struggled to meet its regulatory obligations, raising concerns among investors and regulators.

An auditor is being evaluated.

In December, Alt5 Sigma appointed Victor Mokulu CPA PLLC as its new auditor.

However, documents in Texas show that the firm's license to practice expired in August and was not renewed until December 26.

Under state law, the firm is barred from conducting audits until its license is activated.

Alt5 Sigma told the Financial Times that the auditor is conducting a mandatory peer review under Texas State Board of Accountancy regulations, a process expected to be completed by the end of January 2026.

The company has announced that no audit or financial statements will be issued until the company's license is in effect.

While Victor Mokulu renewed his CPA license on August 31, his firm license remained inactive at year's end.

Past regulatory penalties

The audit firm has already faced enforcement action.

In the year In 2023, the Public Company Accounting Oversight Board fined Victor Mokulu, CPA PLLC, $30,000 for failing to notify the regulator of six public company audits he conducted in 2022.

The Texas board imposed an additional $15,000 fine last year for similar violations.

The organization has been working for more than two years to address deficiencies that led to a decline in results in the 2023 career peer review process.

However, it disclosed 30 smaller audit clients in its recent regulatory filing.

Mokuolu founded the company in 2020 after working in the oil and gas industry.

Delay and fill board vacancies

Alt5 Sigma did not report its results for the quarter ending in late September, putting it at risk of cancellation. Nasdaq.

The company attributed the delay to the former auditor, who officially resigned in November, due to the timing and response.

Administrative issues added to the pressure.

Chief Financial Officer Jonathan Hough, who was hired when he met with Trump, left after three months.

CEO Peter Tassiopoulos left in October.

Board member David Danziger resigned last month after Alt5 Sigma violated requirements to keep an audit committee with a certain amount of accounting expertise.

Corporate changes and disclosures

Alt5 Sigma was acquired by biotech company JanOne Inc. in July 2024. Incorporated, which merged with Alt5 Sigma and received its name the same month.

JanOne previously rebranded in 2019, previously operating as America's Appliance Recycling Centers.

The company says it provides infrastructure to enable financial institutions to integrate with digital assets.

As of December 8th, it holds approximately $7.3 billion worth of WLFI tokens, valued at $1.1 billion.

Since August, President Donald Trump's special envoy for peace talks is Zach Witkoff, founder of Global Freedom Financial and son of Steve Witkoff.

Alt5 Sigma's Canadian affiliate and former principal announced in May that he was found guilty of crimes including illicit enrichment and money laundering in a Rwandan court.

The verdict is being appealed, with both sides denying wrongdoing.