The blockchain company AI Financial Corp, which linked its fate to the Trump family’s cryptocurrency platform less than a year ago, is now teetering on the brink of financial disaster. The firm has lost a significant portion of its market value and faces a crucial decision regarding a digital asset package worth hundreds of millions of dollars. Reports indicate that the company is also at risk of being delisted from Nasdaq.
The market capitalization of AI Financial Corp., formerly known as ALT5 Sigma Corp., has dwindled to below $60 million. Meanwhile, the WLFI tokens the company purchased at $0.20 each are currently valued at around $0.06. The overall value of the package transferred from World Liberty Financial has decreased by over half since the agreement was made. Investors who bought shares in August of the previous year have lost more than 90% of their invested funds.
The collaboration between the two firms gained momentum early last year when World Liberty Financial, originally founded by former President Donald Trump, Middle East envoy Steve Witkoff, and their sons, transferred a package of virtual tokens valued at approximately $750 million in exchange for a stake in the company. To finance the token acquisition, the Las Vegas firm secured $750 million from major market players, including hedge funds Point72 Asset Management and ExodusPoint Capital Management. The transaction was completed in just a few weeks.
75% of Revenue Went to Trump Family
According to the service agreement with World Liberty, 75% of the revenue from token sales went directly to the Trump family, amounting to over half a billion dollars for the First Family. Donald Trump reportedly earned a total of over $1.4 billion from cryptocurrency-related businesses last year, with more than $550 million originating exclusively from World Liberty, as indicated in recent financial disclosures.
As part of the agreement, co-founders of World Liberty secured executive positions at ALT5. Zach Witkoff became the company’s chairman, while Zak Folkman, another co-founder of the cryptocurrency platform, later joined the board of directors. Donald Trump Jr. and Eric Trump celebrated the deal by ringing the Nasdaq opening bell. However, a spokesperson for both brothers stated that neither has ever served on the board, knows the management team, or participated in the company’s operational activities. He added that neither Eric nor Don has any connection to ALT5 or insight into its operations.
Amyot and Wong Barred from Corporate Roles
A closer examination of the company’s history reveals a series of legal issues. Jean-François Amyot and Jason Wong, the founders of the firm, are subject to sanctions from the U.S. Securities and Exchange Commission, which permanently bars them from serving as officers or directors in U.S. public companies. While neither held an official position after the firm went public, both played crucial roles in its operations, according to sources familiar with the company.
A federal judge ordered Amyot in 2015 to return nearly $6 million in illegal profits and pay a $1 million fine related to charges of artificially inflating the prices of U.S. penny stocks. According to the SEC, Amyot never appeared for trial. Two years later, Canadian authorities sentenced him to three months in prison and ordered him to pay over $11 million after he pleaded guilty to market manipulation and conspiracy. Wong was part of a group accused by the SEC in 2009 of taking over inactive companies and fraudulently selling billions of shares, with a judge ordering him to return millions in illicit gains, interest, and civil penalties.
Money Laundering Charges in Rwanda
Andre Beauchesne, responsible for the company’s Canadian operations, has been found guilty of money laundering and faces a potential seven-year prison sentence. He did not participate in the court proceedings nor present a defense. AI Financial stated it is appealing the court’s decision, claiming to have been a victim of fraud — misled by a financial institution in Rwanda and losing over $3 million. Rwandan authorities have frozen the company’s accounts, despite its outreach to the national police.
6.9 Billion Tokens to be Sold in August
CEO Tony Isaac is faced with a critical dilemma. The company’s package of 6.9 billion WLFI tokens, valued at approximately $380 million, will become tradable on August 12. The potential sale of part of this package could further depress token prices on the market. Isaac stated in an interview that the company might explore ways to monetize these assets without direct sales. He added that the firm is in a strong financial position and has ample cash on hand, with its tokens set to be unlocked.
In the year since managers from World Liberty joined the board, the company has undergone three audit firms and reshuffled its leadership. AI Financial has reported losses exceeding $300 million in the 2025 fiscal year. The company’s shares have not traded above one dollar since May. David Wachsman, a spokesperson for World Liberty Financial, noted that while the digital asset sector is currently experiencing a slowdown affecting many public companies with cryptocurrency reserves, the firm remains confident in the long-term value of the governing token WLFI.
Despite the dramatic losses, some shareholders still believe in the project. Vincent Deriu, a certified accountant from New York, purchased shares for about $30,000 in September and has seen 90% of their value evaporate over the past year. Nevertheless, he continues to hold onto the shares, hoping for the long-term success of the venture. He stated that it makes no sense to withdraw now, and the mere association with the Trump family gave him confidence and credibility in the project. In recent weeks, AI Financial has explored the possibility of selling its business to the private firm Prime Delta Corp, linked to one of its original founders. However, a potential sale to a Japanese startup fell through in mid-July.
