ALT5 Sigma, the $1.5 billion backer of Donald Trump’s World Liberty Financial (WLFI), has denied reports that one of its executives is under investigation by the U.S. Securities and Exchange Commission (SEC).
The Information reported that venture capitalist Jon Isaac was being probed for allegedly inflating earnings and insider stock sales tied to ALT5’s fundraising deal with WLFI.
ALT5 swiftly rejected the claim, stating on X that Isaac is neither president nor adviser to the company and that it is unaware of any SEC investigation.
Isaac also denied the allegations, calling them “significant factual errors,” while clarifying that he is CEO of Live Ventures, not ALT5.
However, SEC filings show Isaac signed a two-year consulting deal with ALT5 in 2024 and later converted a $540,000 loan into nearly 466,000 shares, highlighting his ongoing financial ties.
He also previously faced SEC charges in 2021 for inflating earnings and hiding stock sales, a case still active in Nevada.
The controversy has added to scrutiny surrounding Trump’s crypto venture, already accused of insider trading and manipulation.
Investor reaction was swift—ALT5 shares plunged over 10% on Tuesday and slid further in after-hours trading.
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