Eric Trump’s role at crypto infrastructure firm ALT5 Sigma has been revised from board director to board observer, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
The Aug. 25 filing clarified that both Eric Trump, son of U.S. President Donald Trump, and World Liberty Financial (WLFI) co-founder Zach Folkman would serve as board observers, not directors. The adjustment, the company said, was made “in order to comply with Nasdaq’s listing rules” and remains subject to shareholder approval.
The disclosure appears to contradict earlier announcements. On Aug. 11, ALT5 Sigma had publicly stated that Eric Trump would join its board of directors as part of a landmark deal with WLFI, which included raising $1.5 billion for the crypto firm’s corporate treasury. As of this week, Trump was still listed as a director on ALT5 Sigma’s website.
ALT5 Sigma, which rebranded from biotech firm JanOne in mid-2024, has pivoted fully into fintech and digital assets. Under its deal with WLFI, the Nasdaq-listed company received $750 million worth of WLFI tokens, one million shares, and warrants to buy up to 99 million additional shares.
The company’s chairman is Zach Witkoff, son of Trump ally and U.S. Special Envoy to the Middle East Steve Witkoff. The Trump and Witkoff families have emerged as key players in WLFI’s governance as the token seeks broader adoption.
Trump Family’s Expanding Crypto Empire
Since Donald Trump entered office in January 2025, the family has seen its wealth balloon by billions through high-profile ventures in the digital asset space. World Liberty Financial alone unlocked 24.6 billion WLFI tokens last week, giving the Trump family’s holdings an estimated value of around $5 billion at the time.
Alongside WLFI, the family has backed American Bitcoin (ABTC), a mining firm that recently debuted on Nasdaq; Trump Media and Technology Group, parent of Truth Social; and the president’s personal memecoin, Official Trump (TRUMP).
Rising Scrutiny Around WLFI
Despite its rapid rise, WLFI is already drawing scrutiny from users. Some token holders have complained that their wallets were blacklisted or tokens frozen under “high risk” flags. Tron founder Justin Sun, a major WLFI backer, said his own address was blacklisted after he transferred 50 million WLFI tokens to exchange HTX.
One frustrated WLFI holder has proposed putting the issue to a governance vote, underscoring the growing tension between WLFI’s decentralized branding and its top-down control mechanisms.
