Bloomberg Expert: Alt5 Sigma Denies SEC Allegations Amid $1.5B Crypto Venture Turbulence

Alt5 Sigma, a Nasdaq-listed company backing Trump's World Liberty Financial, is under SEC investigation for alleged inflated earnings and insider share sales. The company denied the allegations, but shares plummeted 10.5% after the reports surfaced. SEC filings show past links between Alt5 and Jon Isaac, who is accused of insider trading. The SEC has not officially confirmed the probe.

Alt5 Sigma, a Nasdaq-listed company that serves as a key investment partner of U.S. President Donald Trump's World Liberty Financial (WLF), has denied reports suggesting that one of its executives is under investigation by the U.S. Securities and Exchange Commission (SEC). The company issued a statement on Tuesday, August 19, 2025, denying that venture capitalist Jon Isaac, who is accused of inflating earnings and insider share sales, is either a current or former president or adviser to the company [1].

The rumors surfaced in an article from The Information, which reported that the SEC had launched a probe into Isaac over alleged earnings inflation and insider share sales tied to ALT5's recent $1.5 billion treasury deal with Trump's crypto platform. The report also triggered a 10.5% fall in ALT5's (ALTS) share price to $10.48, according to Yahoo Finance data [1].

Jon Isaac, who currently serves as CEO of the closely affiliated investment firm Live Ventures, also denied the claims, stating that the reports contained "significant factual errors" about his role and regulatory status. He confirmed that he is not the president of ALT5 Sigma and that he is not being investigated by the SEC [1].

However, an SEC filing from December 2024 shows that ALT5 Sigma entered into a two-year consulting agreement with Jon Isaac, where he would provide strategic business development and financial advice. His responsibilities included advising on growth strategies, financial restructuring, client acquisition, new product development, and conducting market research [1].

The filing also showed that, under the terms of his consulting agreement, Isaac held a $540,000 promissory note, which he later converted into 465,753 ALT5 Sigma shares on December 23, 2024 [1].

The controversy adds to mounting scrutiny of WLF and its affiliates, which have already faced widespread accusations of insider trading and market manipulation. The SEC has not officially confirmed the probe, but the rumors have had a significant impact on ALT5's stock price [1].

References:
[1] https://cointelegraph.com/news/alt5-sigma-jon-isaac-deny-sec-probe-amid-wlf-deal
[2] https://www.marketbeat.com/instant-alerts/sigma-lithium-nasdaqsgml-downgraded-by-wall-street-zen-to-sell-2025-08-16/
[3] https://www.cryptotimes.io/2025/08/20/alt5-sigma-denies-sec-probe-rumors-tied-to-jon-isaac/