ALT5 Sigma, associated with the Trump family's World Liberty Financial, has refuted rumors of an SEC investigation involving venture capitalist Jon Isaac, who allegedly faced scrutiny over earnings inflation and insider share sales. The claims surfaced after a report from The Information, causing ALT5's stock price to drop by 10.5% to $10.48. Isaac clarified that he is not the president of ALT5 and is not under investigation. Although he served as a CEO of ALT5’s predecessor, he currently holds shares in the company and supports it. An SEC filing reveals that Isaac entered a consulting agreement with ALT5, tasked with providing strategic advice and was compensated with a promissory note convertible to shares. The SEC previously accused Isaac of wrongdoing in 2021, alleging that he inflated earnings and backdated contracts, but he has denied these allegations. The ongoing scrutiny adds to the challenges faced by World Liberty Financial and its affiliates amid allegations of market manipulation.

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