Alt5 Sigma Corp. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Alt5 Sigma Corp. (ALTS).

If you purchased or acquired Alt5 Sigma securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Alt5 Sigma

Alt5 Sigma Corp., headquartered in Las Vegas, is a digital asset technology company that provides cryptocurrency trading and payment solutions.

In 2025, the company announced a $1.5 billion direct offering and private placement connected to the World Liberty Financial (WLFI) token. Alt5 Sigma's business model has been closely tied to developments in the cryptocurrency sector, including the performance and launch of the WLFI token.

Potential Concerns Under Investigation

Lawyers are investigating a series of events and disclosures that may have significantly impacted Alt5 Sigma investors. One of the most notable events was the extreme volatility in the company’s stock price following the announcement of the WLFI token partnership.

After the $1.5 billion WLFI deal was made public, Alt5 Sigma’s shares initially rose, reflecting market optimism. However, this optimism quickly faded. On the day the WLFI offering closed, the stock dropped by approximately 9.8%.

The most significant alleged corrective disclosure occurred on Aug. 29, 2025, when Alt5 Sigma filed an 8-K revealing that its subsidiary, Alt5 Sigma Canada Inc., had been found criminally liable for illicit enrichment and money laundering by a Rwandan court on May 7, 2025.

The court ordered the dissolution of the subsidiary and confiscated roughly $3.5 million in company funds.

This filing also disclosed the formation of a special board committee to investigate previously undisclosed issues and potential financial misstatements, as well as a bankruptcy complaint involving undisclosed stock units for the former CFO.

The market responded immediately, with Alt5 Sigma’s stock plunging 39%, potentially highlighting the material impact of these revelations on shareholder value.

Securities attorneys may examine whether Alt5 Sigma’s public statements, including the Aug. 11, 2025 press release touting the WLFI Treasury Strategy and capital raise, adequately disclosed the criminal judgment against its subsidiary.

The company described itself as “a leading provider” of digital asset solutions and detailed plans for the $1.5 billion in proceeds, but allegedly did not mention the May 7 Rwandan court ruling or the loss of subsidiary assets.

Legal professionals may review whether shareholders were informed about these material risks at the time of the offering and in subsequent filings. The Aug. 29, 2025 8-K itself acknowledged that “the board was only recently made aware” of these issues and would review “misstatements or omissions” in past financials.

The investigation may also look at the magnitude of investor losses. Alt5 Sigma’s stock lost a significant percent of its value from its peak during the late-2025 crypto sell-off, far exceeding general market declines.

On Aug. 29, 2025, when the company revealed the Rwandan court judgment, the Nasdaq index fell only about 0.6 percent, while Alt5 Sigma’s stock dropped 39 percent. This suggests that the losses may be directly tied to company-specific disclosures rather than broader market trends.

Attorneys could further examine whether the company’s offering documents, including the S-3 shelf registration and prospectus supplement, contained any false statements or omissions about the business or the Rwandan judgment.

If investors purchased Alt5 Sigma securities in the $1.5 billion registered direct offering based on incomplete information, they may have additional claims under federal securities laws.

Finally, the investigation might consider the broader impact on the investor class. Preliminary estimates suggest that even modest per-share losses could result in aggregate damages in the hundreds of millions of dollars, given the volume of shares traded and the sharp stock price declines.

Your Rights and Next Steps

Investors who purchased or held Alt5 Sigma securities and suffered losses may have important legal rights. This is an investigation, not a filed lawsuit, but it may lead to a class action if sufficient evidence of wrongdoing is found.

Lawyers are ready to help evaluate whether investors were harmed by potential misstatements or omissions related to Alt5 Sigma’s disclosures and financial reporting.

If the investigation uncovers violations of federal securities laws, affected investors could be eligible to participate in a class action lawsuit seeking recovery for their losses.

It is important for investors to act quickly, as securities investigations and potential lawsuits are time-sensitive. Preserving documentation of purchases, sales, and any communications from the company will help lawyers assess eligibility and potential recovery.

You May Be Entitled to Compensation

If you purchased or acquired Alt5 Sigma securities and suffered financial losses, you may be eligible to join this investigation and seek compensation. Securities investigations can move quickly, and deadlines may apply if a class action is filed.

To protect your rights and learn whether you may qualify for recovery, complete the form below to join the investigation. Lawyers are ready to help evaluate your claim and guide you through the next steps.