Trump Crypto Firm Alt5 Sigma Fires CEO Amid Growing Legal Troubles

Alt5 Sigma Corp., a Nevada-based blockchain infrastructure company, has dismissed its acting chief executive officer and chief operating officer amid mounting legal troubles.

The leadership shake-up follows the firm’s high-profile $1.5 billion agreement with World Liberty Financial, a crypto venture co-founded by former President Donald Trump’s family members.

The company removed acting CEO Jonathan Hugh and COO Ron Pitters without providing specific explanations for the departures. Bloomberg reported the changes Thursday, citing a company legal filing that stated the removals were not tied to any particular misconduct.

Bloomberg reports that crypto firm Alt5 Sigma has parted ways with acting CEO Jonathan Hugh and COO Ron Pitters, with no reasons disclosed. The company in August struck a $1.5B deal to acquire WLFI tokens from World Liberty Financial, co-founded by members of the Trump family—an…

— Wu Blockchain (@WuBlockchain) November 27, 2025

The executive overhaul arrives months after Alt5 struck its blockbuster deal in August to acquire WLFI digital tokens issued by World Liberty Financial.

That transaction positioned Alt5 among several small public companies pivoting from traditional operations to crypto token accumulation strategies this year.

Under the WLFI agreement terms, a Trump-affiliated entity receives 75% of proceeds from token sales. The structure could generate over $500 million for the family if the project gains widespread adoption. The deal also triggered significant board changes at Alt5 Sigma.

Trump Family Venture Downplays Management Turmoil

World Liberty Financial has publicly minimized concerns about the executive departures at Alt5 Sigma. Spokesperson David Wachsman told reporters that the filing speaks for itself, adding the group remains excited about Alt5’s future prospects.

Zachary Witkoff, a World Liberty Financial co-founder and son of US envoy Steve Witkoff, assumed the chairman position when the partnership was announced. Eric Trump and World Liberty co-founder Zachary Folkman joined as board observers, attending meetings without voting rights. Donald Trump Jr. later participated in a Nasdaq bell-ringing ceremony celebrating the collaboration.

The dismissals represent the latest turbulence for Alt5 Sigma as it navigates its transformation into a crypto-focused entity. The company’s partnership with the Trump family venture generated significant attention when announced, given the unusual revenue-sharing arrangement and political connections involved.

Meanwhile, the firm faces ongoing scrutiny over its strategic pivot from blockchain infrastructure development to token acquisition. Unlike typical corporate crypto investments, Alt5’s WLFI deal carries outsized political implications through its Trump family ties and substantial revenue allocations.

The abrupt leadership changes come without disclosed performance metrics or strategic disagreements. Alt5 has not issued public statements beyond the regulatory filing addressing Hugh and Pitters’ departures or outlining succession plans for the vacant executive positions.

Security Breach Compounds Company’s Legal Challenges

Alt5 Sigma initiated legal proceedings against a former consultant following an unauthorized data breach discovered in late October. The company reported the security incident to the U.S. Securities and Exchange Commission on November 4, 2025.

Internal monitoring systems flagged suspicious login activity on October 23, 2025, across email and file storage platforms. Alt5’s IT team identified multiple email accounts accessed outside approved hours, followed by irregular file transfers to external destinations.

The firm activated emergency protocols, restricting all third-party network access and engaging independent cybersecurity experts for digital forensics. Alt5 subsequently obtained an emergency restraining order against the suspected former consultant.

Forensic investigators are examining affected systems to determine whether client data, transaction records, or sensitive communications were exfiltrated. The company’s SEC filing acknowledged the breach could have material adverse effects on operations and reputation.

Alt5 has not disclosed the full scope of compromised information or whether the breach relates to its World Liberty Financial partnership. The security incident adds another layer of complexity to the company’s mounting legal and operational challenges.

The timing of the executive dismissals relative to the data breach disclosure remains unclear. Alt5 has not confirmed whether the security incident influenced the decision to remove Hugh and Pitters from their leadership positions.