Trump-Linked Crypto Firm Alt5 Sigma Abruptly Suspends CEO Amid Stock Plunge

Leadership Shakeup Follows Steep Stock Decline

Alt5 Sigma Corporation has reportedly suspended CEO Constantine Tassiopoulos without explanation, according to SEC filings reviewed by financial analysts. The suspension comes as the company‘s stock (NASDAQ: ALTS) closed at $2.19 on the day of the announcement, representing a dramatic 74% decline from the $8.42 price when the Trump-linked partnership was initially revealed. Sources indicate the stock has continued to struggle, closing at $2.07 in subsequent trading.

Trump Crypto Partnership Details Emerge

The leadership change follows Alt5 Sigma’s August announcement of plans to raise $1.5 billion and build a treasury of $WLFI tokens from World Liberty Financial, a cryptocurrency venture co-founded by former President Donald Trump and his three sons. Analysis of SEC filings reveals that a Trump-affiliated LLC maintains approximately 38% ownership of World Liberty Financial, along with holding 22.5 billion $WLFI tokens and entitlement to roughly 75% of token sale proceeds.

Reports describe the $WLFI token as a governance token that doesn’t represent ownership in any company or possess backing from underlying assets. The partnership arrangement reportedly included World Liberty Financial acquiring 1 million Alt5 Sigma shares at $7.50 per share, plus warrants for 99 million additional shares. Rather than using cash, sources indicate the payment was made with $750 million worth of $WLFI tokens valued at $0.20 each.

Board Composition and Regulatory Compliance

According to corporate disclosures, World Liberty Financial co-founder Zach Witkoff was appointed chair of Alt5 Sigma’s board following the partnership announcement. Eric Trump was initially slated to join as a board director but was subsequently designated as a board observer instead. The report states this modification was implemented to comply with Nasdaq listing requirements.

Valuation Discrepancies Raise Questions

Market data reveals significant valuation disparities that analysts suggest warrant attention. The $WLFI token was trading at $0.14268 at 5 p.m. EDT Thursday, according to CoinGecko metrics, theoretically valuing Alt5 Sigma’s token holdings at approximately $1 billion. Meanwhile, the company’s total market capitalization reportedly stood at just $227 million, creating what some analysts describe as a puzzling valuation scenario.

Executive Background and Previous Deal History

Before joining Alt5 Sigma, Tassiopoulos served as CEO of Sphere 3D Corp., a data-management firm. During his tenure in June 2021, the company announced plans to merge with Gryphon Digital, though the deal ultimately collapsed in April 2022. Industry observers note that Gryphon Digital later established connections with another Trump crypto initiative, merging with American Bitcoin in September 2025—a crypto-mining venture co-founded by Eric Trump with Donald Trump Jr. as a major shareholder.

Company Evolution and Leadership History

Corporate records trace Alt5 Sigma’s origins to 1976 as an appliance retail and recycling business, incorporating as On-Line Communications Inc. in 1983. The firm underwent multiple transformations, operating as Appliance Recycling Centers of America, Inc. by 1989 before rebranding as JanOne Inc. in 2019 and expanding into biotechnology. The company adopted its current name in 2024 after acquiring blockchain fintech provider Alt5 Sigma Inc.

Previous leadership appointments have also drawn attention. SEC filings indicate that in September 2019, around the time of the JanOne rebranding, former Fox News personality Eric Bolling was hired as president and board chair with a $550,000 salary and signing bonus of shares valued at approximately $1 million. Records show he resigned from those positions after 11 months but remained as a director before departing the board completely in November 2020.

Market Context and Outstanding Questions

World Liberty Financial launched in September 2024, presenting itself as a decentralized finance platform “inspired by the vision of Donald J. Trump.” The venture began selling non-transferable $WLFI tokens the following month to accredited and foreign investors, with initial pricing at $0.015 followed by a second round at $0.05. By late October, reports indicated the tokens were trading at more than double what many early investors paid, though they remained down approximately 61% from their public market peak.

Financial analysts suggest several key developments merit monitoring, including whether Alt5 Sigma will disclose reasons for the CEO suspension, Tassiopoulos’s potential return or permanent replacement, and any impact on the World Liberty Financial partnership. Market observers also note they are watching price movements for both Alt5 Sigma stock and $WLFI tokens following this unexpected leadership change.

References

• https://www.sec.gov/…/form8-k.htm
• https://www.sec.gov/…/alt5pressreleaseceoappoint.htm
• https://www.nasdaq.com/market-activity/stocks/alts
• https://www.sec.gov/Archives/edgar/data/862861/000164117225024661/ex99-1.htm
• https://worldlibertyfinancial.com/about
• https://static.worldlibertyfinancial.com/docs/intl/gold-paper.pdf
• https://www.coingecko.com/en/coins/world-liberty-financial
• https://sphere3d.gcs-web.com/news-releases/news-release-details/sphere-3d-cor…
• https://sphere3d.gcs-web.com/news-releases/news-release-details/sphere-3d-cor…
• https://www.sec.gov/…/ea025544001ex99-3_american.htm
• https://www.sec.gov/…/janone_ex9901.htm
• http://en.wikipedia.org/wiki/Liberty_University
• http://en.wikipedia.org/wiki/WLFI-TV
• http://en.wikipedia.org/wiki/Cryptocurrency
• http://en.wikipedia.org/wiki/Nasdaq

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