Nasdaq-listed crypto company ALT5 Sigma, which has drawn attention partly due to its ties with the Trump family-backed World Liberty Financial venture, is facing renewed scrutiny over its financial reporting and governance practices, raising the specter of a potential delisting from the exchange.
The company recently failed to file its quarterly financial results for the period ending September, triggering a noncompliance notice from Nasdaq. Under exchange rules, companies must file timely financial reports, such as Form 10-Q, with the U.S. Securities and Exchange Commission (SEC) to remain listed.
Nasdaq has reportedly given ALT5 Sigma until January 20, 2026, to present a plan to regain compliance, which could include an extension of up to 180 days if accepted.
In an effort to address the reporting delays, the firm appointed a new auditor earlier this month, Victor Mokuolu CPA PLLC, a small Texas-based accounting firm.
However, state records show the firm’s license expired in August and had not been renewed as of late December, meaning it is currently barred from conducting audit work under Texas regulations.
ALT5 Sigma acknowledged the situation, telling the Financial Times that no audits or reviews of financial statements will be issued until the auditor’s license is reactivated, which the company expects by the end of January 2026, following a mandatory peer review.
The auditor’s regulatory history has also drawn attention. The firm previously failed a peer review and faced fines from accounting regulators for lapses in filing required paperwork.
Market pressure on ALT5 Sigma has been mounting. Its shares have plummeted more than 75% in 2025, reflecting investor unease amid compliance challenges. Governance issues have compounded concerns, including board resignations that have left the company without a fully compliant audit committee.
ALT5 Sigma’s transition from an appliance recycling business into biotech and then into the crypto-fintech space came with high expectations, especially after forging a significant partnership with World Liberty Financial.
However, regulatory and reporting setbacks have underscored ongoing challenges for the company as it navigates the complex terrain of public markets and digital asset ventures.