ALT5 Sigma, a new investment partner of World Liberty Financial under the Trump family, denied recent reports about one of its executives being investigated by the U.S. Securities and Exchange Commission.
Rumors circulated on Tuesday that the SEC is investigating venture capitalist Jon Isaac, accusing him of inflating profits and insider trading in a $1.5 billion deal with Trump's crypto platform.
Hours later, ALT5 Sigma denied on the X platform that Isaac is the current or former president or advisor of the company and stated that it was unaware of any securities regulatory investigation.
Isaac also stated on the X platform that he is not the president of ALT5 and has not been investigated by the SEC. This report was first published on Tuesday by The Information.
"These reports contain significant errors regarding my role and current regulatory status."
This matter has heightened public scrutiny of Trump's World Liberty Financial and its affiliated companies, which have faced accusations of insider trading and market manipulation.
This report caused ALT5's stock price to drop 10.5% to $10.48, and according to Yahoo Finance, the price further fell to $5.39 in after-hours trading, below the level before the company announced the sale of 200 million common shares to kickstart WLF corporate finances.
Jon Isaac confirmed that he is a shareholder of ALT5.
Isaac admitted to taking over the predecessor of ALT5, JanOne Inc, but left before it went public in the U.S. and was renamed ALT5.
Isaac, the current CEO of Live Ventures, holds over 1 million shares of ALT5 stock, valued at more than $5.48 million.
"I have great faith in and support ALT5 Sigma and wish the company all the best," Isaac stated, adding that he buys ALT stock every day.
Records from Live Ventures indicate that the president and chairman of ALT5 is Tony Isaac, who is Jon's father. However, ALT5's website refers to Tony Isaac as a company director.
The SEC documents tell a different story.
However, an SEC document shows that ALT5 entered into a two-year consulting agreement with Jon Isaac in March 2024, responsible for strategic, business development, and financial advice.
Responsible for advising on growth strategies, financial restructuring, and market research.
In addition, Isaac is required to have regular calls with management to ensure the company’s goals are progressing.
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Documents also show that Jonathan converted a promissory note of $540,000 and interest into approximately 460,000 shares of ALT5 stock.
Cointelegraph has reached out to ALT5, WLF, and the SEC regarding this matter but has yet to receive a response.
The SEC previously filed a lawsuit against Jon Isaac.
In 2021, the SEC filed a civil lawsuit against Isaac and his companies—Live Ventures and JanOne—accusing them of financial and informational fraud.
The allegations include inflating issuance profits, backfilling contract dates, and concealing stock sales through nominee accounts.
Isaac and the company denied these allegations, and the case is still ongoing in federal court in Nevada.
Supplementary report: Nate Kostar
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