Forbes: WLFI Reserve Company ALT5 Sigma to be investigated for violating SEC disclosure regulations

On November 22, according to a report by Forbes, WLFI Reserve Company ALT5 Sigma, a partner in the Trump family's encryption project “World Liberty Financial,” stated in documents submitted to the U.S. Securities and Exchange Commission (SEC) that its CEO was officially suspended on October 16. However, internal emails show that the company's board had actually placed him on “temporary leave” as early as September 4. Several securities regulatory experts indicated that this significant discrepancy in timing may have violated information disclosure rules. The enclosed email also revealed that Chief Revenue Officer Vay Tham was simultaneously placed on leave due to the special committee of the board investigating “certain matters related to the company.” According to SEC regulations, publicly traded companies must disclose significant changes in executive duties within four trading days after they occur (Form 8-K). If a company intentionally submits false or misleading information, it may constitute a violation of anti-fraud regulations. In August of this year, ALT5 Sigma accumulated $1.5 billion worth of WLFI tokens through a circular transaction, with estimates suggesting that more than $500 million ultimately flowed to entities associated with President Trump.