ALT5 Sigma, a crypto firm tied to former U.S. President Donald Trump’s World Liberty Financial (WLF) initiative, has publicly denied reports suggesting one of its executives is under investigation by the U.S. Securities and Exchange Commission (SEC).
Rumors of SEC Probe Spark Market Reaction
Speculation emerged earlier this week that venture capitalist Jon Isaac was facing an SEC probe over alleged insider trading and inflated earnings related to ALT5 Sigma’s $1.5 billion treasury deal with Trump’s crypto platform. The rumors, first reported by The Information, triggered a sharp market response.
ALT5 Sigma’s (ALTS) share price fell 10.5%, closing at $10.48 on Tuesday.
The stock slipped further in after-hours trading, plunging to $5.39 — below its pre-announcement level of Aug. 12, when the firm disclosed its plan to sell 200 million common shares for $1.5 billion to support WLF’s corporate treasury.
In a statement posted on X (formerly Twitter), ALT5 Sigma denied any active SEC probe, clarifying that Jon Isaac is neither a current nor former president or adviser to the company. The firm also emphasized it is unaware of any regulatory investigation into its activities.
ALT5 Sigma has been made aware of reports in the press and on social media. For the record: Jon Isaac is not –– and never was –– the President of ALT5 Sigma and he is not an advisor to the company. The company has no knowledge of any current investigation regarding its activities…
“These reports contain significant factual errors regarding my role and current regulatory status.”
Isaac’s Past and Ongoing Ties
While denying current involvement, Isaac admitted he previously “took over” JanOne Inc, ALT5’s predecessor, before stepping away ahead of its 2024 merger and rebrand to ALT5 Sigma. He now serves as CEO of Live Ventures, a related investment firm, but remains a shareholder in ALT5 Sigma, holding more than 1 million shares worth over $5.48 million.
Isaac confirmed ongoing support:
“I am a big believer and supporter of ALT5 Sigma and continue to buy ALT shares daily.”
Setting the record straight on reports from @CoinpediaNews and @theinformation: I am NOT the president of ALT5 Sigma and I am NOT under SEC investigation mentioned in these reports.
I am the CEO of Live Ventures Incorporated (NASDAQ: LIVE), a publicly traded company. Any SEC…
Interestingly, Live Ventures filings identify Tony Isaac, Jon’s father, as ALT5’s president and chairman, though ALT5’s official site lists him only as a director.
SEC Filings Tell a Different Story
Despite public denials, an SEC filing from December 2024 shows that Jon Isaac signed a two-year consulting agreement with ALT5 Sigma in March 2024. The agreement tasked him with:
Advising on business growth strategies
Financial restructuring and product development
Market research and client acquisition
Weekly update calls with management
The filing also revealed Isaac held a $540,000 promissory note, later converted into 465,753 shares of ALT5 Sigma in December 2024.
Ongoing Scrutiny of Trump-Linked Crypto Ventures
The incident adds to the mounting scrutiny surrounding Trump’s World Liberty Financial, which has already faced allegations of insider trading and market manipulation.
Jon Isaac’s legal history also complicates the picture. In 2021, the SEC filed a civil complaint against him and his companies Live Ventures and JanOne, accusing them of financial fraud, backdated contracts, and concealing stock sales. The case remains active in federal court.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
