# ALT5 Sigma **ALT5 Sigma** is the small Nasdaq-listed fintech company that in August 2025 became the **"WLFI treasury company"** for the Trump family's [[World Liberty Financial]], a public company created to hold WLF's own tokens. It renamed itself **AI Financial Corporation** and began trading as **AIFC** on April 29, 2026. Its arc, from a $1.5 billion deal to a stock down more than 90%, is the clearest example in this vault of the crypto-treasury model turning a private venture's tokens into public-market money. ## The deal (August 2025) The deal announced **August 11–12, 2025** raised about **$1.5 billion** in two parts: - a 100-million-share registered direct offering at $7.50 a share, for cash; and - a 100-million-share private placement **paid for by WLF in WLFI tokens**, valued at $750 million. ALT5 then used the cash to buy more WLFI, ending up with roughly **7.5% of the token supply**. [[Zach Witkoff]], WLF's CEO and son of envoy [[Steve Witkoff]], became ALT5's chairman, and WLF executive [[Zak Folkman]] joined as a board observer. Because 75% of WLF's net token-sale revenue flows to a Trump family company, the [[Project On Government Oversight]] (POGO) estimates the family made about **$500 million** from the transaction. [[Eric Trump]] was announced as a director. After a conversation with Nasdaq he became a non-voting board observer instead (SEC filing dated August 25, 2025), and by about April 2026 he had disappeared from the leadership page. ## The unraveling | Date | Event | |---|---| | Aug 29, 2025 | ALT5 discloses that a Rwandan court found a subsidiary, Alt5 Sigma Canada, criminally liable for illicit enrichment and money laundering. The ruling had come months before the deal (reportedly in May 2025) but was disclosed only after it; shares fall more than 50% in days | | Oct 16, 2025 | CEO Peter Tassiopoulos suspended | | Nov 21, 2025 | Auditor resigns; Nasdaq deficiency notices follow | | Feb 2026 | Shareholder Bruce Bent sues in Nevada alleging "illegality" and "unjust enrichment"; withdrawn with prejudice in late June | | Apr 2026 | Democracy Defenders Fund lawyers and former New Jersey AG Matthew Platkin ask the SEC to investigate whether the Rwanda ruling was withheld during fundraising. Rep. [[Ro Khanna]] calls for action over the overlapping boards | | Apr 29, 2026 | Renamed AI Financial Corp; new CEO Tony Isaac pitches the company as working at "the intersection of payments, tokenization, and AI," and the release does not mention WLF | | Aug 2026 | An [[SEC]] FOIA response to POGO finds no investigation records | The structure turned WLF's own tokens into Nasdaq-listed equity and cash, with the venture's CEO chairing the buyer. When the stock fell more than 90% in the months after the deal, the losses landed on public shareholders. ## See Also - [[World Liberty Financial]] · [[World Liberty Financial Investors]] · [[World Liberty Financial Token Ledger]] - [[Zach Witkoff]] · [[Eric Trump]] · [[Zak Folkman]] · [[Trump Crypto Ventures]] · [[USD1]]