WLFI Reserve Company ALT5 Sigma will be investigated for violating SEC regulations.

According to ChainCatcher news, market sources report that the Trump family's encryption project “World Liberty Financial” partner WLFI Reserve Company ALT5 Sigma stated in documents submitted to the SEC that its CEO was officially suspended on October 16. However, internal emails show that the company's board had actually placed him on “temporary leave” as early as September 4. Several securities regulatory experts indicated that this significant discrepancy in timing may have violated information disclosure rules. The same email also revealed that Chief Revenue Officer Vay Tham was placed on leave as well, due to the board's special committee investigating “certain matters related to the company.” According to SEC regulations, publicly traded companies must disclose significant changes in executive responsibilities within 4 trading days after such changes occur (Form 8-K). If the company intentionally submits false or misleading information, it may constitute a violation of anti-fraud regulations. In August of this year, ALT5 Sigma acquired $1.5 billion in WLFI tokens through a circular transaction, with estimates suggesting that more than $500 million ultimately flowed to entities associated with President Trump.