ALT5 Sigma Unravels After Bold Move Into Trump Linked WLFI Tokens

ALT5 Sigma Corporation, the Nasdaq-listed fintech that reinvented itself as a digital asset treasury (DAT) this year, is reportedly grappling with severe internal turmoil and an 80% stock plunge after committing to accumulate World Liberty Financial (WLFI) tokens. 

A new investigation published Wednesday by The Information sheds light on the company’s unraveling just months after its high-profile strategic shift backed by the Trump family.

Stock Craters as DAT Strategy Unravels

The company’s shares, trading under ticker ALTS, have fallen roughly 80% since August, when ALT5 Sigma announced plans to become a major holder of WLFI — the governance token of the World Liberty DeFi ecosystem supported by former U.S. President Donald Trump and his sons Donald Jr., Eric, and Barron.

ALT5 Sigma share price performance over the past 6 months (Source: Google Finance)

The steep decline mirrors a broader cool-down in the DAT trend, which saw a wave of public companies pivot to crypto treasury strategies in hopes of replicating the success of early adopters. 

ALT5 Sigma planned to raise an ambitious $1.5 billion to build its WLFI token reserves, but the plan now appears clouded by internal instability, investor frustration, and potential regulatory headwinds.

WLFI price 3-month performance (Source: CoinGecko)

ALT5 Sigma Executives Quit as Company Warns of Possible Investigations

According to The Information, the weeks following the WLFI announcement triggered cascading departures among senior staff, including executives who resigned or were terminated. More strikingly, the company reportedly warned employees it expected litigation and possible regulatory investigations related to its new strategy.

While no agency has publicly accused ALT5 Sigma of wrongdoing, the timing is notable. In September, The Wall Street Journal reported that the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) had contacted several DATs regarding unusual trading patterns and share-price movements. 

ALT5 Sigma’s stock showed hints of irregular activity in the days leading up to its official WLFI announcement on Aug. 11.

CEO Suspension and Rwandan Criminal Case Add to Turmoil

ALT5 Sigma’s unusual communication practices further fueled uncertainty. In September, the company informed staff that its CEO had been suspended — yet the suspension was not publicly disclosed until October, according to the report.

Another revelation emerged Wednesday: a Rwandan court reportedly found ALT5 Sigma criminally liable for money laundering earlier this year. The alleged conviction was never disclosed to the company’s board during negotiations with World Liberty, raising additional governance concerns.

DAT Trend Under Scrutiny

ALT5 Sigma’s transformation into a digital asset treasury was part of a broader trend of publicly traded firms adopting crypto-reserve strategies. Supporters viewed DAT structures as a new way to align corporate treasuries with emerging blockchain ecosystems.

But critics now argue some DATs may serve as off-ramps for large token holders, enabling them to shift tokens without selling directly into the open market. ALT5 Sigma’s inability to name any of the “world’s largest institutional investors” it claimed would join its fundraising efforts has intensified skepticism.

The company had said it would raise capital by privately placing WLFI tokens contributed by World Liberty, alongside investments from prominent crypto venture firms — none of whom have been publicly identified.

Shareholders Voice Anger

As the company’s valuation plummets and governance concerns mount, some investors are publicly expressing frustration. 

Los Angeles–based shareholder Matt Chipman told The Information, “I feel betrayed. I hope it wasn’t just a money grab for the Trump family. This has been a nightmare scenario in the last three months.”

Founded in 2018, ALT5 Sigma initially promoted itself as a fintech offering blockchain-powered solutions for tokenization, payments, trading, clearing, settlement, and digital-asset safekeeping. 

Its bold pivot into the WLFI ecosystem was meant to signal ambition — but instead has exposed a company now struggling to maintain stability amid executive turnover, regulatory scrutiny, and collapsing investor confidence.