Trump Crypto Partner Alt5 Sigma May Have Violated SEC Rules After Another Filing Discrepancy
Topline
Alt5 Sigma told regulators it learned in November its accountant had resigned, but the accountant says he stepped down three months earlier — a fresh discrepancy that marks the second apparently conflicting filing with the Securities and Exchange Commission in recent weeks for the Trump-linked crypto firm.
Eric Trump and Donald Trump Jr. celebrate World Liberty Financial’s deal with Alt5 Sigma outside Nasdaq MarketSite in New York on Aug. 13. Photographer: Adam Gray/Bloomberg
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Key Facts
Alt5 Sigma told the SEC on Black Friday its independent accountant, Hudgens CPA, PLLC, notified the company on Nov. 21 it was resigning “effective immediately” due to the retirement of its sole partner.
William Hudgens, the firm’s partner, told Forbes he informed Alt5 Sigma before June 30 he would step down after its second-quarter report, which was filed on Aug. 12, not because he was retiring but rather because his firm was getting out of the business of auditing public companies.
Alt5 Sigma is yet to file its third-quarter report and told the SEC on Nov. 12 the delay was partly due to the “timeliness and responsiveness” of its accountant — when asked last week who its accountant was at the time of that filing, an Alt5 Sigma spokesperson told Forbes, “We have no comment at this time.”
Public companies, like Alt5 Sigma, must notify the SEC within four business days when their independent accountant resigns, and their accountant must review any interim financial statements included in a quarterly report.
Alt5 Sigma accumulated $1.5 billion of World Liberty Financial cryptocurrency in August as part of a circular deal that routed more than an estimated $500 million to an entity affiliated with President Donald Trump.
A spokesperson for Alt5 Sigma and World Liberty Financial did not comment when asked about the discrepancies in the dates.
Crucial Quote
“We gave them ample notice,” Hudgens said when asked about Alt5 Sigma’s claim it missed its third-quarter deadline because of delays tied to its independent accountant. Hudgens said his firm had conversations with possible successors but he didn’t think Alt5 Sigma had engaged any of them. As for when a company is late with filing a quarterly report, in general, he said, “it usually indicates issues.”
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