**The Growing Crisis Behind ALT5 Sigma's Downward Spiral**

Investors in the Trump-linked cryptocurrency venture ALT5 Sigma are facing mounting pressure as the company confronts a cascade of regulatory and compliance challenges that have sent its stock plummeting. According to reports from the Financial Times via Cryptonews, the company now finds itself at a critical juncture where both operational and disclosure failures threaten its continued trading status.

**Auditor Licensing Issues Create Compliance Headwinds**

At the heart of the company's troubles lies a licensing problem involving its auditor. State records from Texas reveal that the auditor's credentials lapsed in August, with no renewal filed through the end of December. This creates a significant regulatory gap, as Texas law explicitly prohibits unlicensed auditors from performing audit services. The company has acknowledged this setback, disclosing that its auditor is currently undergoing a mandatory peer review administered by the Texas State Board of Public Accountancy. Management has indicated that this review process should conclude by January's end, but the interim period leaves the company's compliance status uncertain.

**Stock Decline Reflects Investor Alarm**

The market has already rendered its verdict on these developments. Since the beginning of 2025, ALT5 Sigma's share price has contracted by more than 77%, a dramatic erosion of shareholder value that underscores deep investor concern. This steep decline suggests market participants view the company's regulatory and disclosure challenges as existential threats rather than temporary obstacles.

**Nasdaq Delisting Risk Looms**

The situation has escalated further due to the company's failure to submit its quarterly report for the period ending in September. This delinquency has triggered delisting warnings from Nasdaq, adding another layer of urgency to the company's efforts to restore compliance. The combination of unresolved auditor licensing issues, mounting disclosure failures, and declining investor confidence has positioned ALT5 Sigma in increasingly precarious circumstances.