Compass Investments

The internal confusion was exacerbated after ALT5 Sigma suspended its chief, John Isaacs, in September 2025. The decision was kept secret until October, fueling worries about openness within the organization.

While staff were aware of potential litigation and risks to regulators, the firm’s unspoken accusation of money laundering in Rwanda appeared to be the impetus for the tightened oversight. Since then, a number of top executives have since left their posts or been fired, leaving the merged entity in a state of managerial limbo.

Since the merger was finalized in August, the market value of ALT5 Sigma’s stock has fallen by about 75% , reflecting investors’ concerns in light of the disclosures.

The crisis gained publicity in late November, when Forbes reported on the SEC investigation into ALT5 Sigma’s activities related to the papers of the former head of the company.

A few days earlier, U.S. Senators Elizabeth Warren and Jack Reed initiated a request for a federal audit of World Liberty Financial, a crypto-crypto company affiliated with President Donald Trump’s inner circle. According to the senators, the organization allegedly sold tokens to sanctioned parties such as Russian Federation, North Korea and Iran.

The statement also highlighted the fact that DT Marks DEFI LLC, a Trump-affiliated company, receives three-quarters of its revenue from token sales, raising additional questions about oversight, liability and compliance.

A spokesperson for World Liberty Financial categorically denied all claims, insisting that the firm performs rigorous screening for AML/CFT and KYC compliance. Warren and Reed, however, argue that reporting and documentation show otherwise, pointing to “strong evidence” of regulatory violations.