Eric Trump Removed from Alt5 Sigma Board Amid Nasdaq Concerns

TLDR

• Eric Trump was removed from his planned board seat at Alt5 Sigma after discussions with Nasdaq.
• Alt5 Sigma’s leadership adjustment came to light in a recent SEC filing detailing the changes.
• The company announced that Zak Folkman will take a directorship, subject to shareholder approval.
• The SEC filing did not specify the Nasdaq rule that influenced the decision regarding Trump’s removal.
• Alt5 Sigma’s stake in WLFI has performed well, with its $1.5 billion treasury seeing significant gains.

According to a Forbes report, Eric Trump has been removed from a planned board seat at Alt5 Sigma, a fintech firm managing a $1.5 billion WLFI treasury. The firm made this announcement following discussions with Nasdaq about its listing rules. Initially, Trump was set to join as a director, but now he will serve as a board observer.

Alt5 Sigma disclosed the change in a Securities and Exchange Commission (SEC) filing. The company explained that this adjustment came after consulting with Nasdaq to ensure compliance with its listing requirements. The document did not provide specific reasons for Trump’s removal or which Nasdaq rule applied to the situation.

Despite the filing, Alt5 Sigma’s website continued to list Eric Trump as a director. Neither Alt5 Sigma nor World Liberty Financial (WLFI) responded to inquiries regarding the situation. Nasdaq also declined to comment.

Eric Trump Removed as Alt5 Sigma Director

Initially, Alt5 Sigma announced that Eric Trump would join its board while co-founder Zak Folkman would be a board observer. However, this plan has now reversed, and Folkman is expected to take a directorship role, pending shareholder approval. The adjustment has raised questions, as legal experts could not pinpoint a clear reason for Nasdaq’s intervention.

The SEC filing did not mention the exact details behind the change but noted that the discussions with Nasdaq were aimed at adhering to listing rules. This shift comes at a time when Alt5 Sigma is focused on the WLFI treasury strategy, including its involvement in the $1.5 billion offering. The change has added a layer of uncertainty for investors.

Despite the challenges surrounding leadership roles, Alt5 Sigma’s stake in WLFI has performed well. The company holds 7.3 billion $WLFI tokens, which have appreciated significantly in value. As of early September 2025, the tokens had quadrupled their value from the initial offering price.

Legal Complications and Additional Challenges for Alt5 Sigma

Alt5 Sigma also faces legal and regulatory challenges beyond its board restructuring. A Rwandan court recently dissolved the company’s Canadian subsidiary and ordered the seizure of $3.5 million from former principal Andre Beauchesne. Alt5 Sigma only became aware of the ruling in late August, which has raised concerns within the company.

Furthermore, Alt5 Sigma is dealing with litigation tied to its former CFO, Virland Johnson. U.S. trustees claim Johnson failed to disclose restricted stock units during bankruptcy proceedings. The trustees are seeking to recover 330,000 shares, although Alt5 Sigma disputes the allegations.

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