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Trump-Backed Crypto Firm Loses Another CEO After $1.5 Billion Token Deal
Source: CoinEdition Original Title: Trump-Backed Crypto Firm Loses Another CEO After $1.5 Billion Token Deal Original Link: https://coinedition.com/trump-backed-crypto-firm-loses-another-ceo-after-1-5-billion-token-deal/
Leadership Turmoil at Alt5 Sigma
Alt5 Sigma (NASDAQ: ALTS), a crypto firm connected to the Trump family’s digital asset project, has removed Acting CEO Jonathan Hugh and cut ties with COO Ron Pitters. The company did not provide specific reasons but stated the changes were not related to misconduct. Both executives declined to comment.
This marks the second leadership change since Alt5 Sigma announced a major deal in August with World Liberty Financial (WLFI), a crypto venture involving Trump family members. The agreement allows Alt5 Sigma to purchase up to $1.5 billion in WLFI digital tokens, potentially delivering over $500 million to the Trump family, which is entitled to 75% of all token-sale proceeds.
Following the deal announcement, Trump ally Zachary Witkoff became chairman of Alt5 Sigma’s board, while Eric Trump and WLFI co-founder Zachary Folkman joined as non-voting board observers.
Legal Challenges Emerge
Behind the public celebration, Alt5 Sigma faced significant unresolved legal issues. A subsidiary of the company was found criminally liable for money laundering in Rwanda earlier this year. Andre Beauchesne, a principal at the company, was also found liable and ordered imprisoned. Both appealed, claiming they were victims of fraud.
According to SEC filings, Alt5 Sigma’s board did not learn about the Rwanda case until late August, weeks after the Trump-linked token deal was finalized. This revelation prompted the company to suspend CEO Peter Tassiopoulos in October. Hugh later assumed the acting CEO role and is now the second chief executive removed in approximately two months.
New Leadership
Tony Isaac, a long-serving executive who has been with Alt5 Sigma through multiple business pivots—from appliance recycling to anti-opioid solutions to cryptocurrency—will now serve as acting CEO.
The frequent leadership changes underscore instability at Alt5 Sigma as it attempts to reinvent itself through the WLFI token deal, while ongoing legal and governance issues continue to surface.