Eric Trump was removed from ALT5 Sigma Corporation’s board of directors due to Nasdaq listing rule requirements, according to a filing disclosed on Sept. 9.
The August filing stated that “to comply with Nasdaq’s listing rules,” the company restructured its board composition, but did not specify which particular rule triggered Eric Trump’s removal.
Trump now serves as a board observer. Zachary Folkman was also moved from director to observer status, but the ALT5 Sigma board later approved Folkman’s nomination as a new director.
The company noted that both appointments are pending and remain subject to “the approval of the Company’s stockholders.”
Zachary Witkoff, co-founder and CEO of World Liberty Financial, retained his position as chairman of the board of directors.
Deal prompts changes
The board changes stem from ALT5 Sigma’s $1.5 billion financing deal with World Liberty Financial, completed in August.
Through this arrangement, World Liberty Financial gained the right to nominate two directors and received certain observation privileges.
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ALT5 Sigma implemented what it calls a “WLFI Treasury Strategy,” acquiring approximately 7.5% of World Liberty Financial’s WLFI token supply.
The partnership transformed ALT5 from a small payments company into a crypto treasury vehicle specifically designed to support the Trump-backed project.
WLFI serves as the governance token for World Liberty Financial, although the venture does not have a clear product or service as of press time. The token began trading on Sept. 1 following private fundraising rounds that valued it at $0.20 per unit.
The corporate restructuring coincides with ALT5 Sigma facing multiple challenges. The company appointed a special committee to review undisclosed matters, including potential misstatements in its financial statements.
Additionally, ALT5 Sigma’s Rwandan subsidiary faces criminal liability findings for money laundering, with approximately $3.5 million in frozen funds.
Despite the governance changes, the filing confirms ALT5 Sigma’s continued alignment with World Liberty Financial, maintaining the strategic partnership that connects the publicly-traded company to the Trump family’s crypto venture.
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Source: https://cryptoslate.com/eric-trump-removed-from-alt5-sigma-board-following-nasdaq-rule-compliance-requirements/
