The post U.S. SEC Investigates ALT5 Sigma’s President John Isaac for Earnings Inflation appeared first on Coinpedia Fintech News
The United States Securities and Exchange Commission (SEC) is reportedly investigating John Isaac, the president of ALT5 Sigma. According to a report by theinformation, the SEC is investigating Isaac for inflating earnings and suspicious stock transactions connected to the company.
The reported investigation comes after ALT5 Sigma recently closed a $1.5 billion deal with President Donald Trump-backed World Liberty Financial (WLFI). As Coinpedia reported, ALT5 Sigma now holds about 7.5 percent of WLFI’s total supply.
However, the U.S. SEC has not yet issued a formal statement regarding the investigation of ALT5 Sigma and its President Isaac.
What’s Next for WLFI Amid Reported SEC Investigation
The reported investigation of a WLFI-related top investor will have a negative impact on the DeFi project, if the SEC confirms and escalates into a lawsuit. For instance, the SEC vs Ripple Labs lawsuit, which lasted almost five years, significantly weighed down on the XRP bullish sentiment.
However, World Liberty Financial has dozens of whale investors including Justin Sun, Tron (TRX) founder, and Steve Cohen. As a result, the purported investigation of ALT5 Sigma’s Isaac may have minimal impact on the WLFI project in the long term, if the SEC’s reported investigations turn out to be false.
Notably, Eric Trump, the executive vice president of the Trump Organization, joined the board of directors of ALT5 Sigma after the company rang the NASDAQ bell last week. Additionally, Zach Witkoff, co-founder and CEO of WLFI, was appointed Chairman of ALT5’s board.
The reported SEC’s investigation into ALT5 Sigma may not last long, especially with the agency pushing for mainstream adoption of web3 projects and digital assets. An accelerated prosecution would free up the WLFI project to facilitate mainstream crypto adoption.