Alt5 Sigma Shakeup: Execs Out, Legal Issues Mount

Alt5 Sigma, a blockchain infrastructure company recently involved in a crypto venture with ties to the Trump family, has dismissed its CEO and COO. This leadership shakeup comes amid growing concerns about legal troubles and a controversial deal.

Key Takeaways:

• Alt5 Sigma removed its CEO and COO following concerns related to legal issues and a $1.5 billion deal tied to a Trump family crypto project.
• The deal involved WLFI tokens, with a Trump-affiliated entity potentially receiving 75% of the sales proceeds (over $500 million).
• The executive shakeup is linked to a Rwanda money-laundering ruling involving a related subsidiary.

Details of the Departures

Jonathan Hugh (acting CEO) and Ron Pitters (COO) were removed from their positions. Alt5 stated the departures are unrelated to misconduct.

The $1.5B Crypto Deal and Trump Family Involvement

In August, Alt5 Sigma agreed to acquire WLFI digital tokens from World Liberty Financial, a project connected to the Trump family.

The deal allowed a Trump-affiliated entity to receive a substantial portion of WLFI token sales. Zachary Witkoff, a World Liberty Financial co-founder, became Alt5's chairman.

Eric Trump and Zachary Folkman were named board observers. Donald Trump Jr. attended a Nasdaq event celebrating the partnership.

Legal Troubles at World Liberty Financial

A World Liberty Financial subsidiary was found criminally liable for money laundering in Rwanda months before the Trump related deal. Alt5 claims they were not aware of this until August.

Andre Beauchesne, an Alt5 principal, was also found liable in the Rwandan case, with a court ordering his imprisonment.

Peter Tassiopoulos, former CEO, was suspended in October without explanation.

Tony Isaac, Alt5 President, has taken over as acting CEO, after a history of working with the firm through multiple pivots.