Eric Trump Loses Alt5 Sigma Board Seat as Nasdaq Blocks Appointment

Eric Trump, son of former President Donald Trump, was set to join the board of fintech firm Alt5 Sigma, which manages $1.5 billion in assets through the World Liberty Financial (WLFI) project. But after a compliance review, Nasdaq blocked his appointment, leaving Trump downgraded to a board observer role only.

Nasdaq Steps In, Eric Trump Out According to filings with the U.S. Securities and Exchange Commission (SEC), the change came after consultations with Nasdaq. The company had initially planned for Eric Trump to join the board, while co-founder Zak Folkman would serve as an observer. That plan has now been reversed—Trump is an observer, and Folkman is expected to take a director role pending shareholder approval. The documents did not explain why Nasdaq blocked Trump’s directorship, and legal experts reviewing the situation said they could not identify a clear rule that was violated. Despite the filing, Alt5 Sigma’s official website continued to list Eric Trump as a board member on its leadership pages until recently.

WLFI Gains While Alt5 Faces Turmoil Alt5 Sigma partnered last year with the Trump family’s World Liberty Financial, launched in September 2024 as a decentralized finance venture “inspired by the vision of Donald J. Trump.” The company purchased 7.3 billion WLFI tokens at $0.18 each, now worth about $1.5 billion, up more than $200 million in just a month. WLFI tokens have surged since launch, climbing from an initial $0.015 to early September highs of $0.2092—a fourfold increase, though still below their peak. These tokens don’t represent equity but instead grant holders voting rights on governance changes. Trump’s LLC holds a dominant stake, controlling 22.5 billion WLFI tokens and about 38% of World Liberty Financial, giving it rights to roughly 75% of token sale proceeds.

Legal Shadows Over Alt5 Sigma Beyond the Nasdaq controversy, Alt5 Sigma is facing additional challenges. A Rwandan court recently dissolved the firm’s Canadian subsidiary, convicting former director André Beauchesne of illicit enrichment and ordering the seizure of $3.5 million. According to Alt5 Sigma, its board only learned of the ruling at the end of August. The company is also embroiled in litigation involving former CFO Virland Johnson, accused by U.S. bankruptcy trustees of failing to disclose 330,000 restricted stock units. Alt5 Sigma has disputed these claims.

Unanswered Questions Remain Neither Alt5 Sigma, Eric Trump, nor World Liberty Financial have responded to media inquiries. Nasdaq also declined to comment. What is clear, however, is that Eric Trump no longer holds a board seat at Alt5 Sigma, despite the company’s earlier announcements. The episode highlights how WLFI’s rapid rise—driven by political ties to the Trump family—is being overshadowed by legal battles and governance issues that could undermine the project’s credibility.

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