Forbes: WLFI Reserve Company ALT5 Sigma Under Investigation for Violating SEC Disclosure Rules

According to Forbes, the partner of the Trump family's crypto project World Liberty Financial, WLFI Reserve Company ALT5 Sigma, stated in documents submitted to the U.S. Securities and Exchange Commission (SEC) that its CEO was officially suspended on October 16, but internal emails show that the board had actually placed him on temporary leave as early as September 4. Several securities regulatory experts suggest that this significant timing discrepancy may have violated disclosure rules. The same email also revealed that Chief Revenue Officer Vay Tham was also placed on leave at the same time, as a special committee of the board is investigating certain matters related to the company. According to SEC regulations, publicly traded companies must disclose within 4 trading days (Form 8-K) after a significant change in executive duties ceases. If a company intentionally submits false or misleading information, it may constitute a violation of anti-fraud regulations. In August of this year, ALT5 Sigma accumulated $1.5 billion worth of WLFI tokens through a round-trip transaction, with an estimated over $500 million ultimately flowing to entities associated with President Trump.

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