Eric Trump replaced as director amid Nasdaq compliance issues
- Eric Trump was named a director on Alt5 Sigma's board in August 2025.
- Following discussions with Nasdaq, he was reassigned to the role of board observer.
- The lack of clarity regarding Nasdaq rules raises questions and contributes to ongoing speculation.
In the United States, Eric Trump was initially named as a director on the board of fintech firm Alt5 Sigma, a deal linked to a Trump Organization-backed crypto venture. This announcement occurred in mid-August 2025, during a public event where Eric Trump, alongside Donald Trump Jr. and other leaders, rang the Nasdaq opening bell. Shortly afterward, in late August, Alt5 Sigma disclosed via an SEC filing that after consulting with Nasdaq, Eric Trump would no longer serve as a board director. Instead, he would hold the position of board observer. Zak Folkman, the Chief Operating Officer of World Liberty Financial and a co-founder, would assume Eric Trump's spot as a director, pending stockholder approval. The SEC filing refrained from explaining the specific Nasdaq listing rule that necessitated this change, nor did it justify why Folkman would be considered qualified as a director. Nasdaq regulations generally require a majority of board members at listed companies to be independent, raising questions about the qualifications of both Eric Trump and Folkman. Notably, despite the SEC filing stating his new observer role, Eric Trump's name continues to be listed on Alt5 Sigma's website as a director, creating confusion about his current status within the organization.