Crypto Company Faces Audit Dilemma: Stock Price Plummets 77%, Faces Nasdaq Delisting Risk

NonFungibleDegen · 2025-12-29T14:22:13+00:00

Cryptocurrency company ALT5 Sigma encounters trouble due to expired audit credentials and is unable to operate legally in Texas. Although the company is working on renewal, its stock has plummeted by 77%, investors are concerned about its situation, quarterly reports have not yet been submitted, and it faces the risk of delisting from NASDAQ. This case highlights the importance of compliance risks.

NonFungibleDegen

2025-12-29 14:22:13

Abstract generation in progress

【CoinPush】Recently, a pretty interesting incident has come to light — the crypto company ALT5 Sigma, associated with Trump, ran into trouble due to licensing issues for its audit.

The key issue is this: the company’s audit license expired back in August, and by the end of December, it still hadn’t renewed it. This directly prevents it from conducting audit activities under Texas regulations. In other words, it doesn’t have the legal status to do so.

The company’s response is that the auditors are undergoing a mandatory peer review by the Texas State Board of Public Accountancy, which is expected to be completed by the end of January. It sounds like a patch, but the market doesn’t seem to buy it.

What’s even more heartbreaking is the stock performance — it has plummeted over 77% since the beginning of the year, reflecting investors’ extreme concern about the company’s situation. Especially since the company has not filed its Q3 report on time, what does that mean? Nasdaq could delist it at any time. Delayed disclosures and regulatory compliance issues, this combination is truly nerve-wracking. This case also reminds us that in the crypto market, compliance risks can sometimes be more deadly than technical or market risks.

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Degen4Breakfast

· 7h ago

Audit qualification expired? Ha, this is the price of not doing your homework. --- 77%... Oh my, how many people does this benefit? --- It's another compliance issue. Web3 really needs to learn to follow the rules. --- Quarterly reports haven't been submitted, Nasdaq will definitely delist, serves them right. --- Is Texas that strict? I haven't heard about it before. --- Investors are probably going to suffer heavy losses again this time. It's really time to reflect on due diligence.

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UnluckyValidator

· 7h ago

Auditing qualification expired and still daring to list on NASDAQ? You're asking for trouble. --- 77%... That's just how our industry is. A compliance loophole can be deadly. --- Quarterly reports haven't been submitted, delisting is just a matter of time. --- Is Texas strict? Anyway, this company is definitely finished. --- Compliance risk? Basically, it's just laziness in doing things properly. --- The guys investing in this company are probably wanting to smash their computers right now. --- Both auditing and delisting, this project team really isn't paying attention.

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CompoundPersonality

· 7h ago

Does an audit qualification expiration really lead to such a drop? Haha, this is the reality of Web3—compliance issues can be fatal. --- 77%... Is that real? It feels like this company doesn't take compliance seriously at all. --- It's Texas again, and delisting from NASDAQ again. Why is it always the same story? --- Quarterly reports haven't been submitted. This operation is a bit outrageous, showing no regard for investors at all. --- Honestly, it's just poor fundamentals. Who's to blame? --- Having seen too many cases like this, who will be next...

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DevChive

· 7h ago

Even with an expired audit qualification, you can still reach this level? This just shows a lack of regard for compliance—truly outrageous.

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just_another_fish

· 8h ago

The expiration of the audit qualification is truly unbelievable, with a 77% drop... Investors must be devastated.

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StableBoi

· 8h ago

77% directly crashes down—that's the consequence of not taking compliance seriously --- Auditing qualifications can even expire? How unprofessional can you get --- Same old trick, can't even submit quarterly reports and still want to compete on Nasdaq --- Operational mistakes, investors suffer huge losses—such companies should have been cleaned out long ago --- Compliance is really no small matter; many projects get stuck right here --- Texas can't even operate anymore? It's already a done deal

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