On August 22, 2025, Alt5 Sigma, a fintech firm tied to World Liberty Financial (WLFI), announced in an SEC filing that Eric Trump will serve as a board observer rather than a full member due to Nasdaq compliance concerns, per Coindoo.com. Zak Folkman, a WLFI co-founder, was nominated as his replacement to meet listing requirements, following consultations with Nasdaq, per. The move ensures a majority of independent directors, as mandated by Nasdaq Rule 5605(b)(1), per Nasdaq’s governance guidelines. Alt5 Sigma, incorporated in Nevada, navigated New York court restrictions on Trump, but Nasdaq‘s rules prevailed, per.
WLFI, unveiled in 2024 as a DeFi platform inspired by Donald Trump’s economic vision, raised $1.5B through two funding rounds, with token prices rising from $0.015 to $0.05, attracting accredited and overseas investors, per. The $WLFI token offers governance rights but no equity, with a Trump-affiliated LLC holding 38% stake and over 22B tokens for future revenues, per. Early backers received approval to sell portions, but founders face restrictions, per. Alt5 Sigma’s board adjustment supports WLFI’s Nasdaq ambitions, per. X posts from @CryptoLawyerz question the Trump family’s role amid regulatory scrutiny, per.
Alt5 Sigma disclosed a Rwandan court order dissolving its Canadian unit for illicit enrichment and money laundering, seizing $3.5M in assets, per. The firm is appealing, claiming it was defrauded, per. Additionally, it’s entangled in a U.S. bankruptcy case involving its former CFO, accused of concealing stock units in 2024, per. These issues, combined with Nasdaq’s demands, heighten uncertainty, per. SEC filings reveal ongoing compliance efforts, but WLFI’s DeFi focus invites SEC oversight under the Securities Act of 1933, per Coinlaw.io.
The board change signals regulatory risks for Trump-linked crypto ventures, potentially impacting WLFI’s $1.5B fundraising and token valuation, per. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) remain stable, per CoinMarketCap, but WLFI’s governance token could face volatility if compliance falters, per. Investors should verify filings on sec.gov and monitor Nasdaq updates at nasdaq.com. Diversify into USDC or ETH with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for developments. Alt5 Sigma’s adjustments may stabilize its Nasdaq path, but legal hurdles pose ongoing threats in 2025, per.
