Revelations About a Trump-Witkoff Business Raise Troubling Questions
Rules still apply when political power and private profit intersect: Publisher’s Roundup 62
When I was the Obama White House ethics czar during the Great Recession, I would not even allow the president to refinance his modest family home in Chicago. He was regulating the banks in a time of crisis, and it wouldn’t have looked right.
That’s not exactly the approach that President Trump, his cronies, and their families have adopted. I’ve written before about the Top 10 most outrageous corruption scandals of this administration. This week, my Democracy Defenders Fund colleagues and I added another item to the list. Working with former New Jersey Attorney General Matt Platkin, we filed a complaint with the Securities and Exchange Commission urging it investigate ALT5 Sigma (ALTS).
This company boasts Trump’s son Eric as a board member and Trump Special Envoy Steve Witkoff’s son Zach as its board chair. Its history in recent months is one of serious failures of compliance, breakdowns of governance, and profoundly concerning financial connections with another Trump and Witkoff-linked venture, World Liberty Financial (WLF).
The story starts in August, when ALTS told the world that it had raised $1.5 billion through various investment vehicles. ALTS then moved the money to WLF by buying $750 million of its $WLFI governance tokens, about 7% of total supply. As detailed in our letter, “ALTS appears to have steered as much as $500 million of private investor money directly into the pockets of the Trump family and their associates.” When this money hit their wallets, Zach Witkoff (co-founder and CEO of WLF) and Eric Trump (also a WLF co-founder) assumed leadership roles on the board of ALTS.
These facts give rise to questions that are of the utmost importance to the integrity of our financial markets and of our democracy, as our letter explains. The most profound: who were the investors who funded the ALTS $WLFI purchase–and did they do so in order to get in the good graces of the Trump administration?
The concerns about this transaction are only deepened by what went on in the period in and around this massive financial transfer to WLF. In August, ALTS disclosed that several months earlier a Rwandan court had ruled that ALT5 Sigma Canada Inc., a subsidiary of the company, and its former principal were criminally liable for illicit enrichment and money laundering, ordering imprisonment, fines, and dissolution of the subsidiary. Shortly thereafter, the CEO of ALTS was suspended without explanation, auditors changed multiple times within just a few weeks, and the company failed to meet the due date for filing its annual report. It’s little wonder that ALTS was at risk of being delisted from Nasdaq and its share price has plummeted. Despite the immense capital influx from these transactions, the share piece has declined by around 75%. The company is looking at hundreds of millions of dollars in losses for the 2025 fiscal year.
Given these troubling data points, our letter urges the SEC’s Enforcement Division to “carefully examine these issues because they indicate, both individually and collectively, that ALTS may have engaged in a number of securities violations, thereby harming investors and financial marketplace writ large.” This is not just a story about corporate governance. It is a test of whether the rules that protect investors and the integrity of American markets still apply when political power and private profit intersect.
Our SEC letter calling for an investigation of ALTS is just one of many similar filings we’ve made. This one is outrageous enough that even Trump’s SEC may investigate. But whatever they do, we’re laying down a marker for the press, the public and other enforcement authorities. Whether for state attorneys general and securities regulators, a future more independent Congress, or future federal regulators, there will be a trail of breadcrumbs to follow. Meanwhile, we must all demand answers.
Our ability to continue pushing back against Trump and his cronies’ web of dubious dealings is, of course, supported by your paid subscriptions. We are deeply grateful that you Contrarians make this work possible as well as our weekly pro-democracy Contrarian coverage. See for yourself in this week’s roundup of our best content produced by my terrific colleagues:
War Crimes
What Comes From the Failure to Confront Insanity
Jen Rubin wrote on the cascade of civil and political failures behind Trump’s genocidal threats on Tuesday: “some muddled tale of a diplomatic breakthrough should in no way diminish the illegality, the horror, or the frightful intrusion of religious zealotry into our politics.”
Brian O’Neill wrote on how Trump and Israeli Prime Minister Benjamin Netanyahu may be helping to produce the strongest Islamic Republic since 1979. “It would be one of the great strategic self-inflicted wounds in Middle East policy.”
Toxic Religious Rhetoric & Why a Ceasefire in Iran Isn’t Enough
On the podcast this week, Jen spoke with Robert P. Jones about Defense Secretary Pete Hegseth’s crusader rhetoric and the dangers of Trump’s “refrigerator-magnet style” theology, and with Joyce Vance about Iran after the ceasefire, the Republicans finding a shred of conscience, and more.
Norman Ornstein thinks it’s time to call an emergency an emergency and invoke the 25th Amendment. “We have a malignant narcissistic psychopath as president, with control over the military and the atomic arsenal, who is deteriorating mentally before our very eyes.”
Cabinet Chaos
What Pam Bondi Destroyed in One Year Could Take Decades to Rebuild
Stacey Young wrote on just how much Pam Bondi’s reign as AG degraded the Justice Department: an exodus of talent, criminal cases shut down, an utter loss of good faith with the courts and more. “Now, the best way we can fight for the department is from the outside.”
Which Cabinet Member is Next on The Chopping Block?
Sen. Sheldon Whitehouse (D-RI) joined Jen to consider the next attorney general—and the next vacant cabinet seat—amid war with Iran. “I think Kash Patel stands a very good chance of being shown the door.”
The Home Front
Texas Stripped 15,000 Businesses of Opportunity. Now It Faces a Legal Challenge.
Stacey Abrams wrote on how Republicans have made disadvantaged communities a scapegoat for failed economic policies, including a Texas comptroller who quietly decertified more than 15,000 minority- and women-owned businesses in December.
Annastacia Belladonna-Carrera of Common Cause reminded us that, despite what the Trump regime claimed, ICE has never left Minnesota and is continuing operations across the state. “The media may not be all over it … but the need is still there.”
John Boyd, founder of the Black Farmers Association, spoke to April Ryan to sound the alarm on Trump’s devastating attack on small and minority farmers. “There’s going to be a lot of generational land that changes hands.”
Affordability is the Issue, Especially for Childcare
Jennifer Weiss-Wolf wrote on how the Trump administration is putting the onus on states to fund social services — while making it impossible for them to provide those services.
Checking in With the Bots
5 Things You Should Know About AI Right Now
Amid the many hype and doom cycles about AI, Adam Conner of the Center for American Progress gave us a breakdown of what AI is actually doing right now — to the economy, to warfare, to your job.
How the Media is Helping AI Spread Lies
Josh Levs wrote on the problem with AI summaries having taken the place of traditional media as the first source of information for many, even when it comes to war — and how this is compounded by the media’s acquiescence to AI-first search.
History Has Its Eyes on You
Tim Dickinson gave us a rundown of all the things Trump is naming after himself, which somehow includes both the Institute of Peace and the “most lethal warship ever built” at the tip of the iceberg.
The Infuriating Hypocrisy of Usha Vance
Meredith Blake checked in with the second lady, who thinks kids should read more but doesn’t have much to say about the Trump administration defunding libraries (or anything else).
Split Screen: Giorgia Meloni — Feminist or Fascist?
Azza Cohen took a nuanced look at Giorgia Meloni, Italy’s first female prime minister, as both gender-empowerment opportunist and persevering target of media sexism. “That a woman can be the head of a political party named ‘brothers’ is some kind of ironic victory.”
Fighting Back
The Contrarian Covers the Democracy Movement
This week, we saw anti-war protests nationwide in New York, Illinois, Washington, D.C., Missouri, Tennessee, and more. Get help organizing from Indivisible, find protests in your area at mobilize.us, and send us your protest photos at submit@contrariannews.org.
This Congresswoman Is Jamming the Gears of Trump’s Chaos Machine
Rep. Sylvia Garcia (D-TX) joined Jen Rubin with an update on the ongoing standoff over ICE funding and why there is still cause for hope. “The point really is people’s freedoms … so we’re not going to vote for one more penny until these reforms are done.”
Culture, Cartoons & Fun Stuff
This week, our cartoonists took on hollow wins (Rescue from Iran, Nick Anderson), obvious losses (Both Sides Win, Michael de Adder), better worlds (Tom the Dancing Bug, Ruben Bolling), and more.
The Auriemma/Staley Spat is Good for Women’s College Basketball
Carron J. Phillips wrote on how the 2026 Women’s Final Four will be deservedly remembered for one thing — and it wasn’t the championship game. “Sports are more enjoyable when what’s at stake is more than the final score.”
This column is based on our letter and associated materials
BTW, I FINALLY had to become a paid subscriber after today's post by Norm- THANK YOU so much for your service!!!! (and love you Jen!)
Until now, the 2 most corrupt administrations have been considered to be Grant and Harding, but they're fundamentally different from the corruption of Don the Con. In both of those cases the corruption was among the president's associates and/or cabinet members, but the presidents themselves weren't corrupt, from what I understand.
Grant in fact was honest to a fault-- so honest, in fact, that he couldn't fathom the possibility that the people around him were not honest. So his fault was that he was gullible and naive.
Harding was a good ol' boy who freely admitted that he was in over his head as president, so in his limited intellect he managed to associate himself with a serious bunch of chiselers.
But in neither case did the President profit from the corruption in the executive branch.
Don the Con, OTOH is a different animal entirely. He is an active participant in corruption, and along with his family is turning his office into a personal and family cash cow. So while Grant and Harding were merely incompetent, Don the Con has blatantly crossed the "BRIBERY, treason and other high crimes and misdemeanors" needed to be impeached.