A crypto company with ties to Donald Trump is dealing with rumors of an SEC investigation. Let’s break down what’s happening.
Denials All Around
ALT5 Sigma, a partner of the Trump family’s World Liberty Financial, and Jon Isaac, a key figure, swiftly denied any SEC probe. This followed reports linking Isaac to potential earnings inflation and insider trading related to ALT5’s massive $1.5 billion deal with Trump’s crypto platform. The market reacted negatively to the news. Both ALT5 Sigma and Isaac took to social media to declare that no investigation was underway and that Isaac was never president or an advisor to ALT5 Sigma.
SEC Filings Tell a Different Story
However, a December SEC filing reveals a consulting agreement between ALT5 and Isaac, dating back to March 2024. This filing also shows Isaac converting a promissory note into a significant number of ALT5 shares.
Past Issues Resurface
Adding fuel to the fire, reports surfaced about a 2021 SEC civil complaint against Isaac, Live Ventures, and JanOne, alleging financial wrongdoing. While Isaac and the companies denied the allegations, this past legal action likely contributed to the rapid spread of the new rumors and investor concern.
Isaac’s Continued Involvement
Isaac, currently CEO of Live Ventures, still holds a substantial number of ALT5 shares and claims to be a company supporter. Interestingly, while ALT5’s website lists Tony Isaac (Jon’s father) as a director, Live Ventures documents name him as ALT5’s president and chairman. This conflicting information adds to the confusion.