Eric Trump has been removed from the board of the World Liberty Treasury company “ALT5 Sigma” due to Nasdaq rules. Per a Forbes report, Eric Trump will no longer join the board of fintech firm Alt5 Sigma as initially planned, following the firm’s consultation with Nasdaq—though the company did not explain why.
“After discussion with The Nasdaq Stock Market LLC (‘Nasdaq’), and in order to comply with Nasdaq’s listing rules, Zachary Witkoff has accepted his appointment as Chairman of the Board and is the initial nominee to the Board selected by WLF,” the SEC filing said. “Both Eric Trump and Zachary Folkman have been designated as observers. Subject to and following the approval of the Company’s stockholders in accordance with Nasdaq’s listing rules, the Board has also approved the appointment of Zachary Folkman, the other nominee to the Board selected by WLF, as a director.”
More About Alt5 Sigma
ALT5 Sigma Corporation (ALTS) is a fintech giant, providing next-generation blockchain-powered technologies for tokenization, trading, clearing and settlement, payment, and safekeeping of digital assets. The company announced in August that it would raise $1.5 billion through direct and private sales of its shares and use the proceeds to buy digital tokens from World Liberty Financial, a crypto startup whose cofounders include Donald Trump and his three sons.
As part of the deal, Alt5 Sigma said “Eric Trump will become a director on its board of directors,” and World Liberty Financial COO and fellow co-founder Zak Folkman would join as a board observer. However, after consulting with Nasdaq to comply with its listing rules, it was announced that Trump will instead be a board observer, subject to stockholder approval.
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According to Forbes, it was unclear what justified why Nasdaq would accept one appointee from the company while rejecting another. Nasdaq rules require a majority of board members at listed companies to be independent, but if Trump didn’t qualify as independent, it’s not clear why co-founder Zak Folkman would. Neither Trump nor ALT5 Sigma has publicly commented on the decision.
