ALT5 Sigma Denies SEC Probe as Trump-Linked Crypto Rumors Swirl

TLDR

• ALT5 Sigma denied reports that it is under investigation by the US Securities and Exchange Commission.
• The company stated that Jon Isaac is not its president or current adviser and is not involved in any regulatory probe.
• Jon Isaac confirmed that he left ALT5’s predecessor JanOne before it rebranded and went public in 2024.
• An SEC filing shows Jon Isaac had a consulting agreement with ALT5 Sigma starting in March 2024.
• ALT5 Sigma shares fell over 10 percent following the report and continued to drop in after-hours trading.

ALT5 Sigma, linked to former President Donald Trump’s crypto ventures, denied any ongoing SEC investigation involving executive Jon Isaac. A Tuesday report claimed the SEC was probing Isaac over inflated earnings and insider trading linked to ALT5’s $1.5 billion treasury deal. However, both the company and Isaac disputed the claims and clarified his official role and current standing.

ALT5 Sigma Dismisses Executive Probe Claims

ALT5 Sigma responded quickly to the media report, calling it inaccurate and denying that Jon Isaac held any official executive position. The company said, “Jon Isaac is neither the president nor a current adviser of ALT5 Sigma,” through a statement on X. Moreover, it stated it did not know about any SEC investigation related to its business activities.

Jon Isaac also posted on X, echoing ALT5 Sigma’s stance and denying any regulatory probe involving him by the SEC. He clarified that although he previously led JanOne, the company that became ALT5, he stepped away before its public listing.

Although ALT5 Sigma attempted to calm speculation, investor reaction was swift. The company’s stock (ALTS) dropped 10.5% to $10.48 before falling further to $5.39 in after-hours trading. The sharp decline came just days after ALT5 announced its major share sale to support Trump’s World Liberty Financial.

Role of Jon Isaac in ALT5 Sigma Still Under Spotlight

Jon Isaac’s ties to ALT5 Sigma remain under scrutiny despite denials. SEC filings from December revealed a consulting agreement between ALT5 Sigma and Isaac, effective from March 2024. The agreement outlined weekly strategy calls and responsibilities tied to business development and market research.

In addition, Isaac held a $540,000 promissory note, which he converted into 465,753 ALT5 Sigma shares later that year. He currently holds over 1 million shares, valued above $5.48 million, according to public records. “I am a big believer and supporter of ALT5 Sigma,” Isaac said, claiming he still buys ALT shares regularly.

While his exact role remains debated, ALT5 Sigma’s filings confirm a two-year strategic partnership with Isaac. However, the firm’s website does not list him in any leadership position. Confusion also surrounds Tony Isaac, Jon’s father, who is cited in different places as either president or director of ALT5 Sigma.

Legal History Intensifies Market Concerns

The SEC previously filed a complaint in 2021 against Jon Isaac and his firms, Live Ventures and JanOne. That case, involving earnings inflation and stock manipulation, is still active in federal court. Both Isaac and the companies denied any wrongdoing.

Although not directly linked to ALT5 Sigma’s current dealings, this unresolved case has reignited public interest. Given the ties between ALT5 Sigma and Trump’s World Liberty Financial, investors remain alert. As ALT5 Sigma fights off fresh controversy, its leadership and financial links remain under the microscope.

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