Last August, the publicly traded company Alt5 Sigma decided to create a Digital Asset Treasury (DAT) linked to the WLFI token of the Trump family’s World Liberty Financial project. This $1.5 billion deal continues to make waves, even as the company’s stock plummets by 80%.
Alt5 Sigma: A $1.5 Billion WLFI Treasury
In the beginning, there was Donald Trump and his presidential campaign fueled by pro-Bitcoin promises. Now, mentions of the U.S. president in connection with the cryptocurrency sector relate almost exclusively to 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 iconic of which is undoubtedly World Liberty Financial and its native WLFI token, whose actual business operations could use some clarification.
That was all it took to spark enthusiasm among certain publicly traded companies eager to join the race for Digital Asset Treasuries (DATs), with a significant “Trump factor,” such as the previously virtually unknown American fintech company Alt5 Sigma.
In fact, Alt5 Sigma decided last August to create a $1.5 billion WLFI Treasury, “securing approximately 7.5% of the token’s total supply.”
This strategy is closely tied to World Liberty Financial’s USD1 stablecoin, aimed at supporting its adoption and use within U.S. payment and trading infrastructures—though it has not truly bolstered the company’s stock price, which has fallen 80% since the announcement.
Alt5 Sigma Stock Price (YTD)
On this occasion, Alt5 Sigma welcomed a new management team, as well as Trump family ally Zachary Witkoff, to lead its board of directors, while Eric Trump and another co-founder of World Liberty Financial, Zachary Folkman, became non-voting observers on the board.
A Company in Turmoil
Need we point out that the mere purchase of these $1.5 billion worth of WLFI tokens allowed the Trump family to pocket tens of millions of dollars more, since it retains 75% of the proceeds from sales of this cryptocurrency?
This was apparently reason enough not to dig too deeply into the backgrounds of certain senior company executives—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 stated that it had discovered the facts at the end of August, before the WLFI Treasury was established. The company then suspended its CEO in October—who had been in the position for just over a year—without giving an official reason.
The matter does not end there, as Alt5 Sigma also announced this week that it was ending its collaboration with its interim CEO and removing its chief operating officer from their positions, without explaining the reasons for these changes.
This personnel shake-up raises questions, as the company’s current chairman takes over as CEO.
