Alt5 Sigma Corp., a Nevada blockchain infrastructure company that gained national attention after tying itself to a Trump family crypto venture, has removed two top executives following concerns about long-running legal issues at the company.
Key Takeaways:
Alt5 Sigma removed its CEO and COO shortly after entering a $1.5 billion deal tied to a Trump family crypto project. The WLFI token agreement gives a Trump-affiliated entity 75% of sales proceeds, potentially worth over $500 million. The shakeup comes amid legal scrutiny linked to a Rwanda money-laundering ruling involving a related subsidiary.Las Vegas-based Alt5 Sigma dismissed acting chief executive officer Jonathan Hugh and chief operating officer Ron Pitters, replacing both without providing an explanation for the changes, Bloomberg reported on Thursday, citing a legal filing.
The filing reportedly said the departures were not tied to any specific misconduct.
Alt5 Shakeup Follows $1.5B Crypto Deal With Trump-Linked Project
The leadership shakeup comes after the firm struck a $1.5 billion agreement in August to acquire WLFI digital tokens issued by World Liberty Financial, a project co-founded by members of former U.S. President Donald Trump’s family.
That transaction quickly turned Alt5 into one of several small public companies this year that shifted strategy toward accumulating crypto tokens rather than building operating businesses.
Unlike many similar deals, Alt5’s arrangement carried unusually large implications for its political partners.
Under the agreement, a Trump-affiliated entity is entitled to 75% of proceeds from WLFI token sales, a structure that could yield more than $500 million for the family if adoption materializes.
Alt5’s board was also reshaped when the deal was unveiled. Zachary Witkoff, a World Liberty Financial co-founder and son of US envoy Steve Witkoff, was appointed chairman.
Eric Trump and World Liberty co-founder Zachary Folkman were named board observers, allowing them to attend meetings without voting authority.
Eric’s brother, Donald Trump Jr., later joined executives at a Nasdaq bell-ringing ceremony to celebrate the partnership.
World Liberty Financial has publicly downplayed the executive changes. “The filing speaks for itself,” said spokesperson David Wachsman, adding the group remains “excited about the future for Alt5.”
World Liberty Financial Faces Legal Cloud After Rwanda Money Laundering Ruling
Behind the scenes, however, World Liberty Financial has faced mounting legal headwinds.
A subsidiary was ruled criminally liable for money laundering in Rwanda in May, months before the Trump-related deal was finalized, according to previous reports by The Information.
The same case also found Alt5 principal Andre Beauchesne liable, with a court ordering his imprisonment. Alt5 has said both the subsidiary and Beauchesne appealed, arguing they were victims of fraud.
Alt5 has claimed its board was not informed of the Rwandan case until late August. Shortly afterward, former CEO Peter Tassiopoulos was suspended in October without explanation.
Alt5 President Tony Isaac has now taken over as acting CEO. His history with the firm spans multiple reinventions, from appliance recycling to opioid-response efforts, before its recent pivot into cryptocurrency.
As reported, the approval rating of US President Donald Trump is now lower than it was during his first term in the Oval Office, a new YouGov poll this week shows.
According to the poll published on November 25, Trump’s net approval rating stands at negative 19%.
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