Eric Trump kicked off crypto board of Alt5 Sigma and demoted to an observer - what really happened?

Eric Trump is no longer a director at the cryptocurrency firm Alt5 Sigma after the company held talks with stock market regulators, even though it was earlier announced that he had joined the board, as reported by The Street.

On August 13, Alt5 Sigma put out a news release saying that Eric Trump, son of President Donald Trump, had joined its board of directors. On the same day, Eric Trump rang the Nasdaq opening bell to mark a $1.5 billion crypto deal between Alt5 Sigma and World Liberty Financial, which is financially backed by the Trump family.

Alt5 Sigma board changes explained

But a later Securities and Exchange Commission (SEC) filing showed that Trump was demoted to a board observer. This means he can attend board meetings but does not have the power of a full director. At the same time, Zachary Witkoff, the son of Trump’s Middle East envoy Steve Witkoff, was named chairman and board nominee of Alt5 Sigma, as per the report by The Street.


The SEC filing said the change came “after discussion with The Nasdaq Stock Market LLC” and was made “to comply with Nasdaq’s listing rules.” The filing did not explain further. Alt5 Sigma has not yet publicly commented on the issue. However, Trump is still listed as a board director on the company’s website.

The Independent reached out to Alt5 Sigma for official comment but has not received one yet. Meanwhile, the Trump family crypto venture is still making headlines. According to The Wall Street Journal, the family has made as much as $6 billion on paper after their new cryptocurrency started trading.

ALSO READ: Eric Trump drops hint at Presidential run, could he be eyeing the White House?

Trump family cryptocurrency launch

On September 1, the Trump family launched a digital currency called World Liberty Financial Initial Offering (WLFI). It was like a crypto IPO, because before that, people who bought World Liberty Financial tokens couldn’t trade them. The Trump family reportedly holds about a quarter of all WLFI tokens in circulation, as stated by The Wall Street Journal.

Eric Trump, Donald Trump Jr., and Barron Trump are listed as co-founders of World Liberty, while Donald Trump himself is named a “Co-Founder Emeritus.” The family first launched World Liberty Financial last year during Trump’s presidential campaign, promising to “Make America Great Again, this time with crypto.”

Some experts fear that World Liberty could give investors an indirect way to influence the Trump family and possibly seek favors from a future Trump administration. But White House Press Secretary Karoline Leavitt pushed back, saying that “neither the president nor his family have ever engaged, or will ever engage, in conflicts of interest”, as stated by The Independent.

FAQs

Q1. Why was Eric Trump removed from the Alt5 Sigma board?
Eric Trump was demoted to a board observer after Nasdaq talks, as the company had to follow stock market listing rules, according to the SEC filing.

Q2. What is the Trump family’s new cryptocurrency WLFI?
WLFI is the Trump family’s digital currency launched on September 1, 2025, and they hold about a quarter of all tokens in circulation.