Bitcoin News Today: The Trump-Linked Crypto Deal Unfolds Amid Regulatory Whispers and Share Turmoil

ALT5 Sigma, a publicly traded fintech and crypto services company, has denied recent rumors of a U.S. Securities and Exchange Commission (SEC) probe into one of its executives. The rumors, first reported by The Information on August 19, 2025, alleged that Jon Isaac, a prominent figure in the industry and former leader of Live Ventures, was under investigation for allegations of inflated earnings and insider share sales tied to ALT5’s $1.5 billion deal with World Liberty Financial (WLFI), a cryptocurrency project backed by the Trump family. In a public statement on X, ALT5 Sigma clarified that Isaac is neither a current nor former executive or adviser to the company and is not under any regulatory investigation. Isaac also confirmed via X that he is not being investigated and reiterated his support for ALT5, noting he continues to purchase shares daily [3].

The $1.5 billion deal between ALT5 and World Liberty Financial marked a significant step in the company’s pivot toward cryptocurrency. Under the arrangement, ALT5 issued 200 million shares, a combination of new and existing stock, with proceeds used to purchase WLFI tokens. As part of the agreement, the company plans to establish a treasury holding approximately 7.5% of the total WLFI supply. World Liberty Financial also became a lead investor in the deal, receiving 200 million shares in exchange for $750 million worth of WLFI tokens. This move aligns with broader trends in corporate adoption of digital assets, similar to Michael Saylor’s transformation of MicroStrategy into a major Bitcoin holder [1].

The Trump family has significantly expanded its presence in the crypto space through World Liberty Financial. Eric Trump, son of former U.S. President Donald Trump, joined ALT5’s board of directors following the deal, while Zach Witkoff, WLFI co-founder and son of Trump’s Middle East special envoy, became chairman of ALT5 Sigma. This leadership shift underscores the family’s deepening involvement in the project, which is part of a larger strategy to integrate crypto into traditional financial systems [2]. The Trumps have also backed other crypto initiatives, including a memecoin ($TRUMP) and a Bitcoin mining enterprise, American Bitcoin.

The rumors surrounding an SEC investigation triggered a sharp decline in ALT5’s share price. According to Yahoo Finance, ALTS dropped 10.5% to $10.48 during regular trading hours and further fell to $5.39 in after-hours trading. This decline marked a reversal from the stock’s performance following the announcement of the $1.5 billion deal, which initially saw the price rise. The SEC has previously taken action against Isaac and his former companies, including a civil complaint in 2021 over alleged earnings inflation and undisclosed stock sales. While no formal enforcement action has been announced as of now, the reports have sparked investor uncertainty, especially given Isaac’s prior regulatory issues [3].

Despite the regulatory noise, WLFI has attracted notable institutional backing. The token’s supply totals 100 billion units, and it is set to become transferable as early as the end of the month, pending community approval. WLFI has also drawn interest from prominent figures in the crypto space, including Tron founder Justin Sun and hedge fund billionaire Steve Cohen, which may help stabilize investor confidence. However, the token faces competition from copycat projects with similar names and symbols, which could confuse traders and impact market integrity [1]. The outcome of the SEC-related rumors and the broader regulatory environment will be critical in determining the long-term success of the WLFI initiative and its integration into the public markets.

Source:

[1] Trump-Backed Crypto Token WLFI Has a Treasury Company—Here’s What That Means (https://www.investopedia.com/trump-backed-crypto-token-wlfi-has-a-treasury-company-here-s-what-that-means-11790255)

[2] Trump Crypto Company World Liberty Financial’s 'Giant Leap' (https://m.economictimes.com/news/international/global-trends/us-news-trump-crypto-company-world-liberty-financials-giant-leap-a-massive-game-changing-digital-coin-deal/articleshow/123281820.cms)

[3] Trump-Tied Crypto Firm ALT5 Sigma Denies SEC Probe Rumors (https://cointelegraph.com/news/alt5-sigma-jon-isaac-deny-sec-probe-amid-wlf-deal)