ALT5 Sigma, a new partner of U.S. President Donald Trump-backed crypto venture World Liberty Financial, has denied reports that one of its executives is being investigated by the U.S. Securities and Exchange Commission (SEC).
On Tuesday, The Information reported rumors that venture capitalist Jon Isaac was under an SEC investigation for inflating earnings and insider share sales linked to ALT5’s recent $1.5 billion fundraising deal with Trump’s crypto platform.
ALT5 Sigma posted on X saying that Isaac is neither a president nor an adviser at the company and that it is not aware of any SEC investigation into its activities. Jon Isaac also denied the claims, saying the reports contained “significant factual errors” about his role and regulatory status.
“I am NOT the president of ALT5 Sigma and I am NOT under SEC investigation mentioned in these reports,” Issac stated, adding, “I am the CEO of Live Ventures Incorporated (NASDAQ: LIVE), a publicly traded company. Any SEC matters related to Live Ventures have been properly disclosed through our public filings, as required.”
While Live Ventures records say ALT5’s President and Chairman is Tony Isaac, Jon’s father, ALT5’s website lists him only as a director. The controversy adds to growing scrutiny of Trump’s World Liberty Financial, which already faces accusations of insider trading and market manipulation.
Isaac’s Links to ALT5
Jon Isaac explained that he once took over ALT5’s predecessor company, JanOne, but left before it rebranded into ALT5 in 2024. He now runs Live Ventures, an investment firm, but still owns over 1 million shares of ALT5 worth more than $5 million.
While he said he is only a shareholder, the SEC’s filing tells a different story. The filing shows that ALT5 signed a two-year consulting deal with Isaac in March 2024, under which he advised the company on growth and finance. It also revealed that Isaac had a $540,000 loan agreement. However, he later converted, along with interest, into 465,753 ALT5 Sigma shares on December 23, 2024.
Jon Isaac has faced SEC scrutiny before. In 2021, the regulator accused him and his companies of financial fraud, including inflating earnings and concealing stock sales. That case is still ongoing in federal court in Nevada.
As per Yahoo Finance, the news triggered a sharp drop in ALT5 Sigma’s stock price. Shares fell 10.5% on Tuesday. Later, in after-hours trading, they dropped further to $5.48.
Also Read: Alt5 Sigma Raising $1.5B to Buy Trump-Linked WLFI Token
