"Trump-family partner Alt5 Sigma executives abruptly dismissed…Legal unease grows"

Alt5 Sigma (ALT5 SIGMA), a U.S. fintech company that has been promoting a virtual asset (cryptocurrency) project linked to the Trump family, has abruptly replaced its top executives amid recent legal risks, increasing market unease.

According to a Bloomberg report on the 27th (local time), Alt5 Sigma said in a recent filing that it had dismissed acting CEO Jonathan Huh and COO Ron Peters and appointed successors. The company officially said it was not due to any specific misconduct, but analysts say there is a strong connection to legal issues raised internally and externally.

Alt5 Sigma, which had been virtually unknown until now, drew attention in August when it signed a mega deal to acquire $1.5 billion worth of digital tokens from World Liberty Financial (WLFI), co-founded by the Trump family. WLFI's structure takes 75% of token sale proceeds, meaning the Trump family could receive more than $500 million in profits, which was a major topic at the time. The company's board brought on Jack Witkoff, a Trump confidant, and Eric Trump also participated on the board.

But behind the large deal were serious legal risks. According to Bloomberg, Alt5 Sigma's local subsidiary in Rwanda was convicted of money laundering in May of this year, and a key company figure, Andre Boshin, was also found criminally liable. The company is appealing, claiming there was fraud, but this fact was reportedly reported to the board only at the end of August after the WLFI deal was signed.

About a month later, the board suspended then-CEO Peter Tasiopoulos in October, and this week it further replaced the CEO and COO in quick succession, widening the turmoil. The company has a history of shifting from an old appliance recycling business to an opioid response solutions business and last year to a cryptocurrency project, so its business identity is still seen as unstable.

With the strengthening of the U.S. regulatory environment and increased sensitivity around links between cryptocurrency and politics, this removal of executives is likely to affect Alt5 Sigma's and WLFI's future strategies. WLFI said in an official comment, "Alt5 Sigma's announcement says it all," adding, "We look forward to future cooperation."