AI Financial’s $706M WLFI Treasury Raises Going Concern Concerns

AI Financial Corp. (AIFC), formerly known as Alt5 Sigma, disclosed in its latest SEC filing that its massive $706 million WLFI token treasury remains locked and unavailable for sale, even as the company warned about serious liquidity risks and doubts over its ability to continue operating.

The fintech company, which provides crypto payment processing services, acquired 7.28 billion WLFI tokens through a $1.5 billion financing deal connected to the Trump-linked World Liberty Financial ecosystem in 2025. However, the value of those holdings has dropped significantly from the original acquisition cost of approximately $1.46 billion. Despite the large digital asset treasury, AIFC generated only $4.7 million in quarterly fintech revenue.

According to the filing, all WLFI tokens were contractually locked as of March 28. Around 3.53 billion tokens cannot be transferred for 12 months except for limited staking, lending, or collateral purposes. The remaining 3.75 billion tokens also require shareholder approval, charter amendments, and resale registration conditions before they can be unlocked.

Although World Liberty Financial recently approved plans to gradually unlock more than 62 billion WLFI insider-held tokens, AIFC’s treasury remains restricted under separate agreements, preventing the company from accessing liquidity through token sales.

AIFC ended the quarter with $10.5 million in cash but reported recurring losses and a $5.5 million working capital deficit. The company stated these conditions create “substantial doubt” about its ability to continue operations over the next year.

In January, AIFC secured a $15 million non-recourse loan from World Liberty Financial using WLFI tokens as collateral. If AIFC defaults, the pledged tokens would be forfeited. The arrangement also raises governance concerns because both firms share executives, including World Liberty Financial CEO Zac Witkoff and co-founder Zachary Folkman.

The filing additionally revealed material weaknesses in internal controls and accounting errors that required restating the company’s 2024 financial statements. Shares of AIFC closed down 9.6% at $0.91 on Monday.