ALT5 Sigma, a new investment partner of the Trump family’s World Liberty Financial, has denied a recent report suggesting one of its executives is being probed by the US Securities and Exchange Commission.
Rumors spread on Tuesday that the SEC had launched a probe into venture capitalist Jon Isaac over alleged earnings inflation and insider share sales tied to ALT5’s recent $1.5 billion treasury deal with Trump’s crypto platform.
ALT5 Sigma took to X hours later, denying that Isaac is either a current or former president or adviser to the company, and is unaware of any current investigation into its activities by the securities regulator.
Isaac also took to X on Tuesday, also stating he isn’t the president of ALT5 and is not being investigated by the SEC. Reports of the investigation first surfaced in an article from The Information posted on Tuesday.
“These reports appear to contain significant factual errors regarding my role and current regulatory status.”
The fuss adds to mounting scrutiny of US President Donald Trump’s World Liberty Financial and its affiliates, which have already faced widespread accusations of insider trading and market manipulation.
The report also triggered a 10.5% fall in ALT5’s (ALTS) share price to $10.48, according to Yahoo Finance data.
ALTS has dropped further to $5.39 in after-hours, which brings it below where they were before the company announced on Aug. 12 that it would sell 200 million common shares for $1.5 billion to kickstart WLF’s corporate treasury.
Jon Isaac confirms he is an ALT5 shareholder
Isaac acknowledged that he “took over” ALT5’s predecessor — JanOne Inc — some time ago, but left before it went public via a merger in the US and rebranded to ALT5 in 2024.
He currently serves as CEO of the closely affiliated investment firm Live Ventures but remains an ALT5 shareholder, holding more than 1 million shares valued at over $5.48 million.
“I am a big believer and supporter of ALT5 Sigma, want nothing but the best for the company,” Isaac said, while noting that he continues to buy ALT shares daily.
Live Ventures records show that ALT5’s president and chairman is Tony Isaac, the father of Jon. ATL5’s website, however, lists Tony Isaac as a director of the company.
SEC filing tells a different story
However, an SEC filing from December shows ALT5 Sigma entered into a two-year consulting agreement with Jon Isaac in March 2024, where he would…
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