ALT5 Sigma closes $1.5B deal to become WLFI treasury vehicle
Public company ALT5 Sigma closed a $1.5 billion financing deal with World Liberty Financial, taking on roughly 7.5% of WLFI's token supply and installing WLF insiders — including Eric Trump — on its board.
What happened
WLF paid for its ALT5 shares using $750 million worth of WLFI tokens rather than cash, while ALT5 raised the other $750 million via a registered stock offering; Zach Witkoff became board chair, Eric Trump was slated as a director, and Zak Folkman as board observer.
Why it matters
The deal placed a member of the president's family on the board of directors of a public company built specifically to hold and promote his family's crypto token, and the token subsequently lost roughly 82% of its value, raising questions about whether investors were misled by the Trump-family association.