Forbes: WLFI Reserve Company ALT5 Sigma to Be Investigated for Violating SEC Disclosure Rules

BlockBeats News, November 22nd, according to Forbes, the partner of the Trump family's crypto project "World Liberty Financial," WLFI Reserve Company ALT5 Sigma stated in a filing to the U.S. Securities and Exchange Commission (SEC) that its CEO was officially suspended on October 16th, but internal emails show that the company's board had actually placed him on "administrative leave" as early as September 4th. Several securities regulatory experts have indicated that this significant discrepancy in timing may have violated disclosure rules. The same email also revealed that Chief Revenue Officer Vay Tham was also placed on leave simultaneously due to a special committee of the board investigating "certain matters related to the company." According to SEC regulations, a public company must disclose within 4 business days of a significant change in the executive's actual cessation of duties (Form 8-K). Intentionally submitting false or misleading information by the company may constitute a violation of anti-fraud regulations.

In August of this year, ALT5 Sigma accumulated $1.5 billion in WLFI tokens through a round-trip transaction, and it is estimated that over $500 million ultimately flowed to entities associated with President Trump.