Last August, the publicly traded company Alt5 Sigma decided to create a Digital Asset Treasury (DAT) associated with the WLFI token of the Trump family’s World Liberty Financial project. A $1.5 billion operation that continues to make waves, while its stock plummets 80%.
Alt5 Sigma: a $1.5 billion WLFI Treasury
In the beginning, there was Donald Trump and his presidential campaign inflated with pro-Bitcoin promises. Now, mentions of the US president in relation to the cryptocurrency sector almost exclusively concern cases of corruption and/or insider trading.
It must be said that the Trump family quickly established itself within the ecosystem, with numerous strategic companies, the most emblematic of which is undoubtedly World Liberty Financial and its native token WLFI, whose actual activity would require some clarification.
This was enough to enthuse certain publicly traded companies eager to join the race for Digital Asset Treasuries (DAT), with a significant Trump bonus, such as the previously virtually unknown American financial technology company Alt5 Sigma.
In August, Alt5 Sigma decided to create a $1.5 billion WLFI Treasury, “securing approximately 7.5% of the total token supply.”
This strategy is closely linked to World Liberty Financial’s USD1 stablecoin, with the aim of supporting its adoption and use within US payment and trading infrastructures, but it has not really helped its share price, which has fallen 80% since the announcement.
On this occasion, Alt5 Sigma welcomed a new management team, as well as the Trump family ally Zachary Witkoff as chairman of its board of directors, while Eric Trump and another co-founder of World Liberty Financial, Zachary Folkman, became observers on the board (without voting rights).
A company in turmoil
Needless to say, the simple purchase of these $1.5 billion in WLFI tokens allowed the Trump family to pocket tens of millions of dollars more, as it retains 75% of the proceeds from sales of this cryptocurrency.
This was apparently reason enough not to dig too deeply into the CVs of certain senior executives of the company, until a money laundering case in Rwanda dating back to May resurfaced involving one of its subsidiaries and its CEO, who was found guilty and sentenced to prison.
The Board of Directors quickly claimed to have discovered the facts at the end of August, before the WLFI Treasury was set up. The company then suspended its CEO in October, who had been in office for just over a year, without giving any official reason.
The story does not end there, as Alt5 Sigma also announced this week that it was ending its collaboration with its interim CEO and removing its COO, without explaining the reasons for these changes.
This turnover raises questions, while its current chairman takes up the position of CEO.
