Alt5 Sigma, linked to Eric Trump, faces SEC probe over delayed filings, auditor resignation, and CEO suspension disclosures.
Alt5 Sigma, a crypto firm associated with Eric Trump, is facing regulatory pressure following new concerns over missed disclosures and delayed filings.
The company is now under investigation for possible violations of U.S. Securities and Exchange Commission (SEC) rules related to auditor resignation and executive suspension reporting.
Auditor Resignation Raises Regulatory Questions
According to a report from Forbes, Alt5 Sigma disclosed to the SEC that its independent auditor, William Hudgens, resigned on November 21. However, Hudgens said in an interview that he had informed the company months earlier. He stated that he planned to stop auditing public firms after filing the second‑quarter report in August.
SEC rules require public companies to disclose an auditor’s resignation within four business days. The auditor must also review interim financial statements in quarterly reports. Legal analysts say the gap between the resignation notice and the company’s filing could raise compliance concerns for regulators.
The firm also has not filed its third‑quarter financial report. In a November 12 filing, the company partly attributed the delay to the timeliness and responsiveness of its accountant. When questioned about the identity of the auditor at that time, the company declined to comment.
Executive Suspension Reporting Triggers More Questions
Alt5 Sigma is also being examined for its handling of CEO Peter Tassiopoulos’s suspension. The firm told regulators that the suspension started on October 16. However, internal communications indicate he was already placed on leave by September 4.
The company also reported on Black Friday that its auditor, Hudgens CPA, resigned on November 21 “effective immediately.” But William Hudgens told Forbes he informed the firm before June 30 and planned to leave after the second-quarter filing—not due to retirement, but because his firm was exiting public company audits.
“Alt5 Sigma told the SEC on Black Friday its independent accountant, Hudgens CPA, PLLC, notified the company on Nov. 21 it was resigning “effective immediately” due to the retirement of its sole partner.”
“William Hudgens, the firm’s partner, told Forbes he informed Alt5 Sigma… pic.twitter.com/zzmLlNdjfs
— Kalani o Māui (@MauiBoyMacro) December 2, 2025
These reporting gaps surfaced around the same time the firm delayed its 10-Q filing. On November 12, Alt5 Sigma told the SEC the delay was partly due to its accountant’s responsiveness. When asked who the accountant was, the company told Forbes, “We have no comment at this time.”
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Alt5 Sigma Faces Market Pressure as Deal Developments Shift
Alt5 Sigma had previously agreed to raise $1.5 billion for a treasury of WLFI tokens under its deal with World Liberty Financial. Eric Trump and Zak Folkman were expected to join the company as part of the agreement.
By September, however, the firm removed Trump from the proposed board seat, and Folkman was appointed as a full director. These changes came as the company’s stock performance weakened and raised investor concerns.
The firm currently holds around 1.1 billion WLFI tokens. Since the partnership, its valuation has declined, which some observers have linked to ongoing internal and regulatory challenges. The situation remains under review as the SEC considers the timing and accuracy of the firm’s disclosures.