ALT5 Sigma Denies SEC Probe Reports
ALT5 Sigma, a crypto firm linked to Donald Trump’s World Liberty Financial, denied reports of an SEC probe involving one of its executives. The rumors started on Tuesday after The Information reported that venture capitalist Jon Isaac was being investigated for insider trading and inflated earnings tied to ALT5 Sigma’s $1.5 billion treasury deal with Trump’s crypto platform. The company released a statement on X, saying Isaac is not its president, adviser, or former president. ALT5 Sigma added it is unaware of any investigation by the US Securities and Exchange Commission (SEC).
Jon Isaac Denies SEC Allegations
Shortly after, Jon Isaac also posted on X, saying he is not the president of ALT5 Sigma and is not under SEC probe. He wrote:
“These reports appear to contain significant factual errors regarding my role and current regulatory status.”
Market Reaction to the News
The news added pressure on Trump’s World Liberty Financial, which already faces accusations of insider trading and market manipulation. The reports immediately affected ALTS stock price. On Tuesday, ALT5 Sigma’s stock fell 10.5% to $10.48, according to Yahoo Finance data. In after-hours trading, ALTS stock price dropped further to $5.39, lower than before the company’s August 12 announcement of its $1.5 billion share sale.
ALTS Stock Price Hit by Market Reaction
ALT5 Sigma announced on August 12 that it would issue 200 million common shares to raise $1.5 billion for World Liberty Financial’s corporate treasury. The latest drop in ALTS stock price erased gains made after that deal. The rumors of an SEC probe intensified market pressure, pushing the shares below previous levels. The reports added to broader scrutiny of Trump’s new crypto venture. The project has attracted criticism from regulators and market participants since its launch.
Jon Isaac Confirms ALT5 Sigma Shareholding
While rejecting any executive role, Jon Isaac admitted he holds a large stake in ALT5 Sigma. He explained that he once “took over” the firm’s predecessor, JanOne Inc, but left before it merged in the US and rebranded to ALT5 in 2024. Isaac now leads Live Ventures, a company closely tied to ALT5 Sigma. He confirmed he holds over 1 million ALTS shares worth more than $5.48 million. Isaac said he continues to buy ALTS stock daily, stating:
“I am a big believer and supporter of ALT5 Sigma, want nothing but the best for the company.”
SEC Filing and Consulting Agreement
An SEC filing from December 2024 showed a consulting agreement between ALT5 Sigma and Jon Isaac. The agreement began in March 2024 and was set for two years. Under the terms, Isaac was required to advise on business growth, restructuring, product development, and client acquisition. He was also tasked with conducting market research and joining weekly update calls with company management. The filing also showed that Isaac held a $540,000 promissory note, which he converted into 465,753 ALTS shares on December 23, 2024.
SEC Probe History With Jon Isaac
The SEC probe rumors revived attention on Isaac’s past legal challenges. In 2021, the SEC filed a civil complaint against him and his companies, Live Ventures and JanOne. The allegations included inflating earnings, backdating contracts, and hiding stock sales through a nominee account. Isaac and the firms denied the charges. The case remains active in federal court in Nevada.