Trump Family-Linked ALT5 Sigma Faces Delisting Risk Amid Auditor License Controversy

Source: Cryptonews Original Title: Trump family-linked ALT5 Sigma draws renewed scrutiny Original Link:

Background

Nasdaq-listed ALT5 Sigma, a former appliance recycling business turned biotech and fintech venture backed by World Liberty Financial, has failed to produce its quarterly financial results on time.

Auditor License Issues

To address the delay, the company switched auditors this month to Victor Mokuolu CPA PLLC, a little-known accounting firm that has previously failed an inspection under the industry’s peer review process and has been fined by accounting regulators.

Critically, the firm is currently operating without an active license that expired in August and is barred from performing audit work until the license is renewed under state regulations. Although Victor Mokuolu, the firm’s founder, renewed his personal certified public accountant license on August 31, the firm’s license remained inactive as of December 26.

ALT5 Sigma stated: “No reviews or audits of Alt5’s financial statements will be issued by our auditor until the firm’s license is active.” The company added that the firm is currently undergoing a peer review per Texas State Board of Accountancy regulations, expected to be completed by the end of January.

Regulatory History

According to reports, the firm had previously failed to meet regulatory deadlines, prompting action from the Texas State Board of Public Accountancy and another U.S. regulator after it repeatedly failed to file required paperwork on time.

The firm was fined by the Public Company Accounting Oversight Board in 2023 for failing to inform the regulator of six public company audits within the required timeframe. Additional penalties were imposed by the Texas board in 2024 for similar violations.

Delisting Risk

ALT5 Sigma shares have dropped over 77% since the start of 2025. The company currently faces the risk of being delisted from Nasdaq after failing to file its quarterly results for the period ending September.

Board member David Danziger, who joined around the time of the World Liberty Financial token deal, has resigned, putting the company in violation of a requirement to have an audit committee with sufficient accounting experience and size.

Earlier this month, the company was criticized after conflicting timelines in its SEC filings raised questions about how and when it disclosed the resignation of its previous auditor.