ALT5 Sigma and Sigma i Pi program under pressure: auditing irregularities threaten Nasdaq status

Related to the Trump family, the cryptocurrency company ALT5 Sigma is facing serious threats to its Nasdaq listing status due to audit issues within the sigma and pi program. An investigation revealed that the newly appointed auditor does not hold an active professional license, which constitutes a direct violation of federal and state regulations.

The company’s situation is rapidly worsening due to a series of regulatory neglect, delays in financial reporting, and gaps in corporate governance. These problems, initially contained within the sigma and pi program, now pose a significant threat to the company’s continued trading.

Auditor Without a Valid License: State Regulation Violations

ALT5 Sigma’s new auditor is the little-known Texas firm Victor Mokuolu CPA PLLC, which in fact does not have the legal right to conduct financial audits. According to state documents reviewed by the Financial Times, the firm’s license expired in August 2025 and has been inactive for at least six months.

Although the company’s founder, Victor Mokuolu, renewed his personal CPA license at the end of August 2025, the corporate registration itself was never reinstated. This may seem like a technicality, but it has serious legal implications: Texas state regulations explicitly prohibit companies without an active license from issuing audit opinions.

ALT5 Sigma confirmed that no audits or financial reviews will be issued until the company’s license is reactivated. The auditor is currently undergoing an industry review, which was expected to conclude by the end of January 2026, but the current status of this process remains unknown.

Regulatory Violations and Oversight Penalties

The auditor’s issues are not limited to the expired license. The history of Victor Mokuolu CPA PLLC is filled with serious violations of auditing standards and regulations.

The Public Company Accounting Oversight Board (PCAOB), the federal regulator of public company audits, fined the firm in 2023 for failing to inform oversight authorities about six public company audits within the required deadlines. This indicates systemic problems with reporting processes and communication with regulators.

Additional sanctions were imposed by the Texas State Board of Accountancy in 2024 for similar procedural violations. The combination of federal and state penalties suggests recurring compliance issues among the company’s personnel and procedures.

Threats to the Company’s Status: Overdue Reports and Management Gaps

Audit delays are not the only problem facing ALT5 Sigma. The company listed on Nasdaq has yet to file its financial results for the third quarter of 2025. Such reporting neglect directly violates exchange requirements and could lead to delisting procedures.

The situation is further complicated by the recent resignation of board member David Danziger. His departure means the company no longer meets Nasdaq’s minimum requirements for the number of audit committee members with accounting expertise. Such management structure deficiencies could independently trigger delisting procedures.

ALT5 Sigma’s shares have lost a significant portion of their value in recent months, reflecting growing investor concern over management issues and transparency. The company’s transformation from an appliance recycling sector to biotechnology and decentralized finance, including plans to hold World Liberty Financial (WLFI) tokens on its balance sheet, has not brought operational or regulatory stability.

Outlook and Risks Ahead

The sigma and pi program framework, under which audits for ALT5 Sigma were supposed to be conducted, proves insufficient to address the accumulated compliance problems. The company faces several critical challenges in the coming months: reactivating the auditor’s license, completing overdue financial reports, restoring a full audit committee, and regaining the trust of regulators and investors.

Without a swift resolution of these issues, the risk of delisting from Nasdaq becomes increasingly real, which would be a significant blow to the credibility of investments supported by World Liberty Financial.