On August 11, 2025, Alt5 Sigma Corporation (NASDAQ: ALTS) announced a $1.5B funding deal to acquire 7.5% of WLFI tokens from World Liberty Financial (WLFI), a Trump family-backed DeFi project. Eric Trump was initially set to join the board as a director, with Zach Witkoff as chairman. Still, he was downgraded to a board observer following Nasdaq consultations to comply with listing rules, per Forbes. The move, including a Nasdaq bell-ringing on August 14, 2025, aimed to establish a WLFI treasury strategy using proceeds for token purchases, debt repayment, and operations.
The acquisition triggered a 38% drop in WLFI’s value, erasing gains from its September 2024 launch, where it raised $550M from accredited and foreign investors at $0.015–$0.05 per token. Trump-affiliated LLCs own 38% of WLFI and 22.5B tokens, entitled to 75% of sales proceeds, per. Nasdaq cited governance conflicts, leading to Eric Trump’s demotion, per. X posts from @SjoerdMeijer11 detail the SEC Form 424B5 filing, confirming the structure and the rump economic interests, per [post:0]. Justin Sun’s frozen funds add uncertainty to further investments.
This mirrors earlier Trump-linked projects like the $TRUMP memecoin, which surged on hype but crashed amid volatility, per. World Liberty Financial, launched in September 2024 as a DeFi platform “inspired by Donald J. Trump,” faced immediate scrutiny for non-transferable tokens and political ties. The $1.5B raise $750M cash for shares, and $750M WLFI tokens positions Alt5 Sigma as a major stakeholder. Still, the 38% WLFI drop highlights risks in politically affiliated crypto, per. SEC investigations and Nasdaq oversight reflect broader concerns over transparency and governance.
WLFI’s decline impacted Trump Media and related assets, with Alt5 Sigma’s stock down 97.74% YTD, per. The Nasdaq’s intervention underscores regulatory risks for crypto treasuries, per. X posts from @WLFIFan predict WLFI at $100 by Q2 2026, but scepticism persists, per [post:2]. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) hold steady, per CoinMarketCap, but WLFI’s turmoil could erode trust in Trump-branded crypto.
Monitor SEC filings on sec.gov and WLFI updates via worldlibertyfi.com. Set stop-losses on BTC below $112,000 and diversify into USDC or ETH, per TradingView. Follow @TheBlock__ on X for real-time insights. While Alt5 Sigma’s strategy echoes MicroStrategy’s BTC treasury, political ties amplify risks, per. WLFI may rebound with the 2026 elections, but caution is advised amid ongoing probes.
