ALT5 Denies SEC Probe Claims Amid Trump Treasury Partnership

Highlights:

• ALT5 has denied claims that it is under an SEC probe and addressed claims and speculation around the Jon Isaac and WLF deal.
• ALT5 shares dropped over 10% after reports of a probe and continued to fall in after-hours trading.
• Jon Isaac confirmed his support for ALT5 as the firm faces scrutiny tied to Trump’s World Liberty Financial platform.

ALT5 Sigma has rejected reports linking the company and its executives to a new Securities and Exchange Commission probe. The denial followed days after announcing a $1.5 billion deal with Donald Trump’s World Liberty Financial.

UPDATE: Trump-linked ALT5 Sigma dismisses SEC probe rumors over alleged insider trading tied to World Liberty Financial’s $1.5B treasury deal, clarifying Jon Isaac was never President or advisor of the firm. pic.twitter.com/sX5ktM8QzU

— Investors Collective (@investorscoll) August 20, 2025

The speculation started on Tuesday when The Information published claims involving venture capitalist Jon Isaac. The report alleged Isaac faced scrutiny for insider share sales and possible earnings inflation tied to ALT5’s treasury financing for Trump’s platform. The story quickly circulated across major financial media outlets and social platforms.

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— The Information (@theinformation) August 19, 2025

ALT5 stated X within hours. The company said Isaac was not a president or adviser and emphasized it had no knowledge of any SEC probe. The firm’s swift response aimed to address the growing speculation. Isaac also responded on X. He described the reports as inaccurate and said they contained significant factual errors regarding my role and current regulatory status. His denial attempted to separate himself from the controversy, though investor attention remained focused on the allegations.

ALT5 Denies SEC Probe Claims as Shares Fall

The company’s denial did not ease investor concerns. ALT5 shares fell 10.46% on Tuesday, closing at $5.48. ALT5 recently announced plans to sell 200 million shares for $1.5 billion to finance World Liberty Financial’s corporate treasury.

Even though Isaac denied those allegations, court documents show that he was previously associated with ALT5. It is recorded that in March last year, the company entered into a two-year consulting agreement with him. His expertise encompassed guiding client growth, restructuring, business strategy, and product development.

An SEC filing from December revealed that Isaac converted a $540,000 promissory note plus interest into 465,753 ALT5 shares. He now holds more than one million shares, valued at over $5.48 million. Despite the controversy, Isaac has continued to express support for ALT5. “I am a big believer and supporter of ALT5 Sigma and want nothing but the best for the company,” Isaac stated. He also confirmed that he continues to buy shares daily. Company records list Tony Isaac, Jon’s father, as president and chairman. This distinction further complicated the narrative around the reported investigation and the family’s role in the company.

Scrutiny of Trump’s WLF and Past SEC Case

The developments fueled additional scrutiny of Trump’s World Liberty Financial. The project has already faced allegations of insider trading and market manipulation since its launch earlier this month.

The fact that Jon Isaac has a history related to the SEC is also important. The commission instigated a civil complaint against him, Live Ventures, and JanOne in 2021. The case involved accusations of overstatement of profits, contract backdating, and the concealment of the sale of shares. Isaac and the firms denied wrongdoing, and the case continues in federal court in Nevada.

Trump’s administration has also advanced policies to promote cryptocurrency adoption. The president signed an executive order encouraging retirement accounts to include crypto investments. Meanwhile, the SEC added momentum by clarifying that certain liquid staking models do not qualify as securities.