ALT5 Sigma, Linked to Trump, Under Scrutiny for Auditor Licensing Issues

ALT5 Sigma, a company listed on Nasdaq and associated with the Trump family, is facing significant scrutiny after it was revealed that its newly appointed auditor is not authorized to perform audits due to an expired firm license. This situation compounds the company's existing compliance challenges, including failed deadlines for financial filings.

Key Takeaways

ALT5 Sigma appointed a new auditor who is currently disqualified from conducting audits because of an expired license.
The auditor's licensing problem adds to ALT5 Sigma’s ongoing compliance difficulties, particularly after the company missed its Q3 filing deadline.
The auditing firm has previously faced fines from regulators for repeated violations in reporting and filing obligations.

According to a report by the Financial Times, ALT5 Sigma recently replaced its previous auditor after it failed to submit its third-quarter financial results by the due date. The company has hired Victor Mokuolu CPA PLLC, a small accounting firm based in Texas, which regulators have stated lacks an active firm license necessary for audit work.

Audit Firm Under License Restrictions

Reports indicate that state filings show the license of the firm expired in August and has not been renewed as of late December. This lapse prevents the firm from legally performing any audit work under Texas state regulations. Although Victor Mokuolu has renewed his individual CPA license as of August 31, the firm itself remains inactive pending the completion of the licensing process.

ALT5 Sigma did acknowledge the situation, informing the Financial Times that no audits or reviews of its financial statements could occur until the firm’s license is reinstated. The company stated that the auditor is currently undergoing a mandatory peer review managed by the Texas State Board of Accountancy, with a completion target by the end of January.

This issue adds to a series of compliance concerns surrounding ALT5 Sigma, which has shifted its business focus multiple times in recent years, transitioning from an appliance recycling company to biotech and now fintech and cryptocurrency. The firm benefits from backing by World Liberty Financial, a crypto initiative with links to the Trump family.

History of Regulatory Issues

Regulatory documents highlight that Victor Mokuolu CPA PLLC has a history of by missing deadlines, which has led to enforcement actions from the Public Company Accounting Oversight Board and other state authorities. In 2023, the firm was fined for failing to notify regulators regarding several public company audits, with further penalties in 2024 for similar infractions.

Nasdaq Delisting Risk Intensifies

The operational difficulties faced by ALT5 Sigma are causing significant strain on its stock prices. Shares have fallen over 77% since the beginning of 2025, reflecting growing investor anxiety as the company struggles with its disclosure obligations.

ALT5 Sigma now faces the real risk of being delisted from Nasdaq due to its failure to file the quarterly report for the period ending in September. Additionally, governance issues have become more pressing following the resignation of board member David Danziger, which has resulted in the company no longer meeting the audit committee requirements related to its size and accounting expertise.

Concerns have been raised by analysts and investors regarding inconsistencies in the company's SEC filings, particularly about the timing surrounding the resignation of its previous auditor.

The situation worsened when Eric Trump, who was anticipated to join ALT5 Sigma’s board in connection with its partnership with World Liberty Financial, instead took on only a role as an observer after discussions with Nasdaq representatives.

In a further development, ALT5 Sigma last month dismissed two top executives due to ongoing concerns regarding longstanding legal issues within the company.