Donald Trump’s World Liberty Financial (WLF), recently partnered with ALT5 Sigma as an investment partner, swiftly denied rumors that one of its officials was being investigated by the U.S. Securities and Exchange Commission. A venture investor with connections to the company, Jon Isaac, was the focus of the rumors, which said he was under investigation for insider trading and exaggerated profits related to ALT5’s recent $1.5 billion treasury agreement with Trump’s cryptocurrency platform. Isaac is neither a president nor an adviser to ALT5 Sigma, the firm clarified in a statement posted on X, adding that it is not aware of any ongoing regulatory investigations. Isaac confirmed the denial on Tuesday, posting on X that he is not the company’s president and that the SEC is not looking into him.
But the shares of ALT5 saw a steep decline as a result of the rumors. The gains since August 12, when ALT5 announced plans to raise $1.5 billion through the sale of 200 million common shares to build WLF’s corporate treasury, were erased as shares of ALTS fell 10.5% to $10.48 on Tuesday according to Yahoo data and continued to lose after-hours to $5.39. The drop demonstrates the increased sensitivity of investors to regulatory dangers, especially when connected to financial endeavors associated with Trump that are already being accused of market manipulation and insider trading.
Jon Isaac’s role and ongoing legal challenges
Isaac is still a key player in the company’s history and organization, even though he has distanced himself from the most recent incident. Although he left before the company’s formal merger and rebranding in 2024, he admitted that he had previously assumed leadership of JanOne Inc., ALT5’s precursor. He is currently the CEO of Live Ventures, but he still owns a sizable portion of ALT5, with more than a million shares worth more than $5.48 million. Additionally, according to SEC filings, Isaac exchanged a $540,000 promissory note and accumulated interest into 465,753 shares in December 2024 as part of a consulting contract that required him to provide weekly management calls, advise on growth initiatives, and acquire clients.
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Isaac’s prior legal issues add to the dispute. The SEC accused him and his businesses of hiding stock sales and exaggerating earnings in a civil complaint it filed against them in 2021. That dispute, which is now pending in a federal court in Nevada, highlights the continual regulatory burden that ALT5 Sigma must contend with.