Eric Trump will have reduced board role at WLFI treasury company Alt5 Sigma

Alt5 Sigma, the Trump Organization-backed crypto treasury company, has reportedly reduced Eric Trump's role in the organization. When the effort was first announced in August, the second-eldest Trump son was named as a board member.

Now, according to a U.S. Securities and Exchange Commission document dated Aug. 25, Eric Trump is only joining as a board observer. Zak Folkman, COO and fellow co-founder of World Liberty Financial, another Trump-connected crypto project, who was also initially named a board member, is now also an observer. Folkman, subject to stakeholder approval, may be named director.

Zachary Witkoff, son of close Trump associate and U.S. special envoy to the Middle East Steve Witkoff, has reportedly accepted his appointment as Chairman of the Board as "the initial nominee to the Board selected by WLF," according to the SEC filing. Forbes was first to report the news.

In August, Alt5 Sigma said it looked to raise $1.5 billion through equity sales to build up a treasury reserve of WLFI tokens, the governance token for World Liberty Financial, a DeFi and stablecoin effort that names President Donald Trump and his three sons as advisors.

Eric Trump, alongside Donald Trump Jr. and other World Liberty Financial executives, rang the Nasdaq opening bell on Aug. 13 shortly after announcing the treasury play. A Trump-affiliated LLC owns around 38% of World Liberty Financial and is entitled to about 75% of the proceeds from token sales.

Reportedly, Eric Trump and Folkman’s revised role comes after a conversation with Nasdaq regarding listing requirements — though no specific rule was cited in the filing. Like other crypto treasury companies, Alt5 is looking to go public, providing indirect exposure to its WLFI balance sheet holdings.

To be sure, board observers still carry weight as non-voting participants in board meetings.

Alt5 has already acquired around 7.3 billion WLFI tokens at $0.18 each — meaning it holds about $1.3 billion worth of tokens.

WLFI, which became transferable following a token holder vote in July, is currently trading around $0.19, up from the two $0.015 and $0.05 tranches in which they were initially sold.