"Trump's Cryptocurrency Assets" Faces Financial Crisis: 3 Auditors Replaced in 6 Weeks, Executives Resign En Masse

A recent explosive revelation in the crypto world—Alt5 Sigma, a crypto enterprise linked to the Trump family, is experiencing an unprecedented trust crisis. In just six weeks, the company has changed three auditing firms, and senior management has been resigning en masse recently, causing operational chaos.

The Truth Behind the “Frequent Breakups” with Auditors

The issue began when Alt5 Sigma hired the auditing firm Victor Mokuolu CPA PLLC on December 8th, whose license had already expired in August. It wasn’t until the Financial Times reported this problem that the company hurriedly dismissed the firm on Christmas Day and appointed LJ Soldinger Associates as its third auditor.

It looks like a rushed “patch job.”

Even more awkward is that the dismissed auditor itself has a poor track record. After Victor Mokuolu CPA PLLC’s license in Texas expired, regulations clearly prohibit it from conducting audits. Although founder Victor Mokuolu updated his CPA license on August 31st, as of December 26th, the company’s license had still not been renewed by the Texas State Board of Public Accountancy.

This isn’t the first violation. As early as 2023, the PCAOB (Public Company Accounting Oversight Board) fined the company $30,000 for failing to report completed audits on time; Texas regulators also imposed a $15,000 fine. In the 2023 peer review, the company received a failing rating.

“Personnel Shake-up” After Trump Deal

Even more shocking are the internal personnel changes. Since the deal with World Liberty Financial in August, Alt5 Sigma’s leadership has been changing like a revolving door.

Trump’s crypto project promised that Alt5 Sigma would buy and hold a large amount of WLFI tokens. As of December 8th, Alt5 Sigma held approximately 7.3 billion WLFI tokens, with a current price of $0.17, giving a circulating market cap of about $4.21 billion. This investment is crucial for the company.

However, this was followed by mass departures:

• Chief Financial Officer Jonathan Hugh, who joined during the Trump deal, resigned after just three months
• CEO Peter Tassiopoulos stepped down quietly in October
• Board member David Danziger resigned last month

These resignations directly led to violations of regulatory requirements regarding the size of the audit committee and the professional experience of its members.

Financial Report Delays and Delisting Risks

The issues continue to escalate. Alt5 Sigma has failed to file its quarterly report for the end of September on time and faces the risk of delisting from Nasdaq. The company attributes part of the delay to the “lack of timeliness and responsiveness” of its former auditors.

This creates a “vicious cycle”: frequent auditor changes lead to delayed financial reports → delayed reports increase delisting risk → delisting risk further damages confidence and financing ability.

From Biotech to Crypto Finance: A Dramatic Turn

Interestingly, Alt5 Sigma is a “turnaround” story. Originally called JanOne, it was a biotech company focused on “innovative solutions to end the opioid epidemic.” In July this year, JanOne merged with Alt5 Sigma and transformed into a company under the banner of “financial infrastructure and digital asset economy.”

Such frequent shifts, combined with executive departures and audit chaos, naturally raise investor concerns.

More Complex Issues

Adding to the woes, in August, Alt5 Sigma disclosed to U.S. regulators that its Canadian subsidiary and former executives were found by Rwandan courts in May to have committed crimes including “illegal wealth accumulation and money laundering.” The case is still under judicial review, with David Beauchesne and others denying any misconduct, claiming to be victims of fraud.

What Does the Market Think?

Regardless of internal explanations, the current predicament facing Alt5 Sigma is clear: chaotic financial reporting, unstable auditors, frequent management departures, and delisting threats. These factors together severely damage the credibility of Trump’s crypto project and have prompted the market to reassess the investment risks associated with it.

How this develops next remains to be seen and warrants ongoing attention.