Eric Trump, son of Donald Trump, will now serve as an observer on Alt5 Sigma's (NASDAQ:ALTS) board instead of taking a director seat.
What Happened: Alt5 Sigma Corporation disclosed in an SEC filing on Tuesday that Eric Trump will no longer serve as a director, instead being redesignated as a board observer alongside co-founder Zachary Folkman.
The decision follows undisclosed discussions with Nasdaq, though the filing did not cite which listing rule prompted the change.
According to Forbes, legal experts remain puzzled as to why Nasdaq permitted one appointee while rejecting the other.
The shift is not tied to Trump's New York legal ban, since Alt5 is incorporated in Nevada.
Adding intrigue, the filing also revealed legacy controversies: a Rwandan court ruling against a former principal for money laundering, and a U.S. bankruptcy case involving Alt5's ex-CFO over undisclosed restricted stock units.
Despite the SEC disclosure, the company's website still lists Trump as a director.
Why It Matters: Just weeks ago, Eric Trump had joined Donald Trump Jr. and World Liberty Financial (WLFI) executives at Nasdaq's opening bell ceremony, days after Alt5 announced its plan to acquire $1.5 billion worth of WLFI tokens.
Those tokens have gained $210 million since purchase, though they remain down about 30% from recent highs.
WLFI, closely tied to the Trump family, launched WLFI tokens in 2025, which quadrupled from early investor pricing.
A Trump-affiliated LLC holds a 38% WLF stake and is entitled to 75% of WLFI token sale proceeds.
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