Eric Trump’s expected seat on the board of crypto platform Alt5 Sigma has been cut back after Nasdaq flagged compliance concerns. A late August SEC filing shows Trump was reclassified as a board observer, with World Liberty Financial co-founder Zak Folkman listed as the proposed replacement.
JUST IN: Eric Trump removed from the board of World Liberty Treasury’s “ALT5 Sigma” over Nasdaq compliance rules.#worldlibertyfi #Trump #ALT5 #Nasdaq #Compliance https://t.co/h3skLiQKnv pic.twitter.com/LYpFNufQOz
— Roundtable Network (@RTB_io) September 9, 2025
Alt5 Sigma is tied to World Liberty Financial (WLFI), a Trump-linked DeFi project that unveiled a $1.5 billion fundraising plan earlier this year.
Nasdaq’s Role Leaves Questions
Alt5 Sigma said the change followed discussions with Nasdaq to stay within listing standards, but the filing gave no specifics on which rules applied. Legal analysts noted Nasdaq requires a majority of independent directors but could not explain why Trump was excluded while Folkman was cleared.
The confusion deepens given Trump’s ongoing restrictions in New York, which technically don’t apply because Alt5 Sigma is incorporated in Nevada.
Trump-Linked Crypto Venture at the Center
World Liberty Financial, launched in September 2024, has marketed itself as a decentralized finance platform influenced by Donald Trump’s economic vision. The platform introduced $WLFI tokens that grant voting rights but do not represent company ownership. A Trump-affiliated LLC controls 38% of the company and holds more than 22 billion tokens, entitling it to the bulk of future sales revenue.
The tokens initially priced at $0.015, then jumped to $0.05 in the second round, attracting accredited and foreign investors. While founders remain restricted from selling, token holders recently voted to allow limited sales by early investors.
Alt5 Sigma Faces Additional Headwinds
The SEC filing also revealed new legal problems. A Rwandan court found Alt5 Sigma’s Canadian unit guilty of illicit enrichment and money laundering, ordering its dissolution and seizure of $3.5 million in assets. The company is appealing, arguing it was the victim of fraud.
Separately, Alt5 Sigma remains tied to a U.S. bankruptcy case involving its former CFO, Virland Johnson, who is accused of hiding stock units in 2024. The firm disputes the claims but is still embroiled in proceedings.
Nasdaq’s quiet block of Eric Trump’s board role piles onto the mounting risks around Alt5 Sigma and WLFI. Between legal disputes, regulatory questions, and Trump family ties, traders are left weighing whether this venture is a genuine DeFi play, or a compliance storm waiting to hit.
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