The SEC is investigating Alt5 Sigma, a company that recently conducted a $1.5 billion partnership with Trump’s World Liberty Financial. Its President, Jon Isaac, is the direct target.
Apparently, the Commission is determining whether or not Alt5 Sigma engaged in fraud activities including earnings inflations, stock manipulation, and more.
SEC Investigates Trump Partner
World Liberty Financial, a major Trump family crypto enterprise, has been investing in a lot of Web3 firms lately. Recently, the firm closed a $1.5 billion deal with Alt5 Sigma, ostensibly to support a WLFI token strategy, and it invited the firm to ring the Nasdaq Bell with it. Today, however, the SEC is reportedly investigating this Trump family partner:
This report came from The Information, alleging that the SEC is investigating Alt5 Sigma and its President, not any piece of the Trump family itself. Considering that the Commission’s enforcement capabilities have severely diminished under Trump’s war on crypto enforcement, this investigation is very surprising.
It’s unclear what the final outcome will be, or exactly what the Commission is scrutinizing. For example, some social media users have claimed that the SEC is investigating Jon Isaac over incidents totally unrelated to any Trump ties.
The SEC had outstanding complaints against Isaac dating to 2021, and he has allegedly engaged in insider trading at companies other than Alt5 Sigma. In other words, the notion of a Trump-related investigation may be overblown, but it’s hard to be quite certain yet. This is a developing situation.
World Liberty Financial did not immediately respond to BeInCrypto’s request for comment.