Turmoil inside World Liberty crypto treasury includes investigations, firings and Rwandan money laundering conviction

ALT5 Sigma Corporation, a Nasdaq-listed fintech that shifted to a digital asset treasury (DAT) strategy focused on accumulating World Liberty Financial (WLFI) tokens, is experiencing significant internal turmoil alongside an 80% stock collapse. The company, whose WLFI partnership is backed by Donald Trump and his sons, reportedly warned staff of potential litigation and regulatory investigations shortly after announcing the pivot. This followed reports that the SEC and FINRA contacted multiple DATs regarding irregular trading patterns, with some unusual activity noted in ALT5 Sigma's shares before the WLFI strategy announcement. Further compounding the issues, The Information reported that a Rwandan court found ALT5 Sigma criminally liable for money laundering earlier this year, a conviction allegedly not disclosed to the board when the World Liberty deal was made. The company's CEO was also suspended without immediate public disclosure, leading one investor to feel "betrayed" by the situation.

(Source：The Block)