# Trump family crypto deal collapses as AI Financial stock falls 93%

**Published:** 2026-06-30T18:25:03.999Z  
**Topic:** Crypto Scam  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/a8f78586-0e04-4c77-8a24-789118d42fcb

AI Financial (formerly Alt5 Sigma) shares plunged 93% to $0.66 after a $1.5 bn crypto sale that gave the Trump family $500 m, raising questions over the deal’s

AI Financial Corp.’s stock slid to $0.66 on June 8, a 93% drop from its August 8 close of $8.97, putting the Nasdaq‑listed firm on the brink of delisting and casting doubt on a $1.5 billion crypto transaction that netted the Trump family roughly $500 million [1].

| At a glance | |
|---|---|
| Share price (June 8) | $0.66 |
| 24‑hour move | – |
| Total loss since August | 93% |
| Catalyst | $1.5 bn crypto token sale to Alt5 Sigma (now AI Financial) |

## The deal and its fallout  
In August, Eric Trump and Donald Trump Jr. announced a partnership between World Liberty Financial—a crypto firm they co‑founded in 2024—and Alt5 Sigma, a little‑known public company that rebranded as AI Financial Corp. The agreement transferred $1.5 billion worth of crypto tokens from World Liberty to Alt5, with disclosures indicating the Trump family was slated to receive about $500 million from the sale [1]. The transaction was marketed as a way for investors to gain exposure to a Trump‑backed cryptocurrency via a Nasdaq‑listed stock.

Since the announcement, AI Financial’s share price has tumbled. FactSet data show the stock closed at $8.97 on August 8, the day before the deal was disclosed, and has since fallen to 66 cents—a 93% loss—prompting a warning that the company could be delisted if it cannot lift its price out of penny‑stock territory within the next 15 trading days [1].

## Governance, lawsuits and investor fallout  
The company has cycled through three CEOs and three outside auditors since the August celebration, and even sought a loan from World Liberty in January, using part of the proceeds to try to prop up its share price—an effort that failed [1]. Eric Trump has publicly denied any leadership role, and the Trump Organization’s spokeswoman said neither brother has ever been on the board or involved in day‑to‑day operations [1]. Meanwhile, activist group Democracy Defenders Fund has urged the SEC to launch an independent investigation, but the regulator has not commented [1].

Hedge funds that participated in the August transaction have reported mixed outcomes. Point72 Asset Management bought $36.5 million of AI Financial stock and exited before year‑end, while ExodusPoint Capital Management still held shares at a paper loss of $14 million as of March [1]. Hong‑Kong‑based Soul Ventures disclosed an $85 million stake and appears to have exited in mid‑October, likely realizing a $56‑$58 million loss [1].

## What to watch
- **Nasdaq delisting deadline** – AI Financial must raise its share price above penny‑stock levels within the next 15 trading days to avoid removal from the exchange.  
- **SEC investigation** – Any formal action by the SEC following the Democracy Defenders Fund’s request could affect the company’s compliance status and investor confidence.  
- **Further token sales** – Additional crypto token purchases or sales by World Liberty could alter the financial exposure of the Trump family and impact AI Financial’s balance sheet.

The steep decline of AI Financial underscores how a high‑profile crypto partnership can quickly turn into a cautionary tale for investors, while leaving open questions about the ultimate fate of the $500 million proceeds earmarked for the Trump family.

## Sources
1. CNBC — [Trump family got about $500M from crypto venture — but investors saw steep losses](https://www.cnbc.com/2026/06/09/trump-world-liberty-financial-crypto-alt5-sigma.html)
2. MSN — [Trump called crypto a scam then it made his family billions – in-depth analysis](https://www.msn.com/en-gb/money/general/trump-called-crypto-a-scam-then-it-made-his-family-billions-in-depth-analysis/vi-AA25GuAc?ocid=BingNewsVerp)
3. MSN — [Trump said Bitcoin was based on thin air – then his family started cashing in](https://www.msn.com/en-ca/money/topstories/trump-said-bitcoin-was-based-on-thin-air-then-his-family-started-cashing-in/vi-AA240Eah?ocid=BingNewsVerp)

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