Eric Trump has been removed from the Alt5 Sigma board following a Nasdaq review, raising new questions about the $1.5 billion deal.
Eric Trump's Removal from the Board
Eric Trump was abruptly removed from the Alt5 Sigma board after governance concerns were raised by Nasdaq. Initially appointed as a director in August, his role was later changed to an observer status. The decision was made following discussions with Nasdaq to ensure compliance with its listing rules. Zak Folkman, COO of World Liberty Financial, replaced him as a proposed board member.
$1.5 Billion Funding Plan
Alt5 Sigma plans to raise $1.5 billion through direct and private share sales to acquire tokens from World Liberty Financial, a startup founded by Donald Trump and his sons. WLFI tokens were initially sold at $0.015 in October 2024 and remain non-transferable, limiting their trading to designated channels.
Regulatory Questions and Market Scrutiny
The board changes raised governance questions among experts regarding compliance and transparency. Some law professors noted they could not identify a clear Nasdaq rule that applied to Eric Trump. The transaction with World Liberty Financial exposes Alt5 Sigma to increased regulatory scrutiny, as deals involving affiliates may raise concerns about market manipulation.
Eric Trump’s removal from the Alt5 Sigma board highlights the importance of compliance with Nasdaq rules and may significantly impact the company’s future token strategies.
