Company disclosures show the Trump family was entitled to roughly $500 million from a 2025 crypto transaction with Alt5 Sigma, whose shares later plunged.
A Trump-family crypto venture generated a claim to roughly $500 million for President Donald Trump’s family through a 2025 deal with a small publicly traded company whose shares have since collapsed, according to company disclosures cited by CNBC.
The transaction linked World Liberty Financial, a crypto company co-founded by Eric Trump and Donald Trump Jr., among others, with Alt5 Sigma, which later renamed itself AI Financial Corp. Alt5’s stock closed at $8.97 on Aug. 8, the last trading day before the World Liberty deal was announced, and ended June 8 at 66 cents, a 93% decline, according to FactSet data cited in the report.
The split outcome has drawn fresh scrutiny because the company is now warning investors about its survival. AI Financial has said in a securities filing that conditions at the company raise “substantial doubt” about its ability to continue as a going concern within one year. It also faces pressure from Nasdaq’s minimum-price rules after trading below $1 for 15 consecutive trading days as of June 8.
Under the August deal, Alt5 acquired about $1.5 billion worth of WLFI tokens from World Liberty Financial. World Liberty disclosures said the Trump family was entitled to 75% of the proceeds from token sales, putting the family’s direct gains from the Alt5 transaction at roughly $500 million after fees and expenses, CNBC reported.
Ethics watchdogs and former regulators have called for Securities and Exchange Commission scrutiny of AI Financial’s disclosures and potential conflicts connected to the president’s family. The SEC declined to comment on whether it has examined the company.
The report also noted that there is no evidence that anyone involved in Alt5’s August stock sale tried to use the Trump family relationship for personal benefit. The White House rejected conflict-of-interest concerns. “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest,” spokeswoman Anna Kelly told CNBC.
A spokeswoman for the Trump Organization said Eric Trump and Donald Trump Jr. have not had roles in AI Financial’s operations, board or leadership. Eric Trump said in a May post on X that he had “zero leadership or decision-making role in the company.”
AI Financial told CNBC it was focused on building the business and creating long-term value for shareholders, while dismissing what it called “unfounded accusations and speculation.” The next test for the company is whether it can lift its share price above penny-stock levels or take other steps to avoid a deeper Nasdaq listing problem.
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