Eric Trump Removed From Alt5 Sigma Board Amid Nasdaq Compliance

Eric Trump was removed from a planned board seat at fintech firm Alt5 Sigma following consultations with Nasdaq Stock Market to comply with its listing rules, though the specific Nasdaq rules prompting this change were not disclosed. Instead of serving as a director, Trump will now serve as a board observer, while Zak Folkman, co-founder and COO of World Liberty Financial (WLFI), is expected to be appointed as a director pending shareholder approval. Alt5 Sigma manages a $1.5 billion treasury of WLFI tokens, a decentralized finance platform co-founded by Donald Trump and his sons, with a Trump-affiliated LLC controlling around 38% of WLFI and entitled to a significant share of token sale proceeds. The move has raised questions among analysts given Nasdaq’s requirement for a majority of independent directors, and why Trump was blocked but Folkman was not, especially since Alt5 Sigma is incorporated in Nevada and unrelated to Eric Trump's ongoing New York court restrictions. Alt5 Sigma is also dealing with legal and regulatory challenges, including a Rwandan court ordering the dissolution of its Canadian unit and a U.S. bankruptcy case involving its former CFO. This development adds to the uncertainty surrounding the Trump family's involvement in crypto ventures amid growing regulatory scrutiny.