Alt5 Sigma (NASDAQ: ALTS) connected to the Trump family’s crypto project, has removed Acting CEO Jonathan Hugh and cut ties with COO Ron Pitters. The company didn’t provide a reason but said it wasn’t related to misconduct.
Both executives declined to comment.
Another Leadership Exit at Alt5 Sigma
Notably, this is the second leadership change since Alt5 Sigma struck a major deal in August with World Liberty Financial (WLFI), a crypto venture co-founded by Trump family members.
The agreement allows Alt5 Sigma to buy up to $1.5 billion in WLFI digital tokens, putting the fintech company in the spotlight. The deal drew attention because it could deliver more than $500 million to the Trump family, which is entitled to 75% of all WLFI token-sale proceeds.
After the deal, Trump ally Zachary Witkoff became chairman of Alt5 Sigma’s board. At the same time, Eric Trump and WLFI co-founder Zachary Folkman joined as non-voting board observers.
The group, along with Donald Trump Jr., appeared at a Nasdaq bell-ringing ceremony to celebrate the partnership. WLFI said the filing “speaks for itself” and that it is “excited about the future for Alt5.”
Related: Eric Trump Joins ALT5 Sigma Board as Company Raises $1.5 Billion for WLFI Treasury
Legal Issues Surface Behind the Scenes
Despite the public celebration, Alt5 Sigma was already facing unresolved legal challenges overseas.
Specifically, a subsidiary of the company was found criminally liable for money laundering in Rwanda earlier this year. A principal at the company, Andre Beauchesne, was also found liable and ordered imprisoned. Both Beauchesne and the subsidiary appealed, claiming they were victims of fraud.
According to SEC filings, Alt5 Sigma’s board did not learn about the Rwanda case until late August, weeks after the Trump-linked token deal was finalized.
The revelation led Alt5 Sigma to suspend CEO Peter Tassiopoulos in October, without explanation. Hugh later stepped in as acting CEO and is now the second chief executive removed in roughly two months.
Alt5 Sigma Appoints New Acting CEO
The company’s long-serving executive, Tony Isaac, who has been with Alt5 Sigma through multiple pivots, from appliance recycling to anti-opioid solutions, to cryptocurrency, will now take over as acting CEO.
The frequent leadership changes highlight the instability at Alt5 Sigma as it tries to reinvent itself through the WLFI token deal, while ongoing legal and governance issues continue to emerge.
Related: Nasdaq Blocks Eric Trump From Alt5 Sigma Board Over Compliance
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