Plans for Eric Trump to join the board of fintech firm Alt5 Sigma have been scrapped following Nasdaq’s review. Instead, Trump will now serve only as a board observer, according to updated filings with the U.S. Securities and Exchange Commission. The move comes just two weeks after Alt5 announced he would become a director as part of a $1.5 billion share sale deal with Trump-linked World Liberty Financial (WLFI).
The revised arrangement places WLFI co-founder Zak Folkman as a nominee for the board, pending shareholder approval. Nasdaq did not specify the listing rule behind the change, while neither Alt5, WLFI, nor Trump commented on the matter.
The SEC filing also revealed legal troubles for Alt5’s Canadian subsidiary, which was convicted in Rwanda for money laundering and illicit enrichment, with $3.5 million seized. Alt5 is appealing the ruling. WLFI controls about 38% of Alt5 and holds 22.5 billion WLFI tokens, giving it rights to 75% of token-sale proceeds.
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