WLFI Treasury Company AI Financial SEC Filing: Survival Warning as $706M Tokens Stay Locked

AI Financial, formerly Alt5 Sigma, has warned in its latest SEC filing that its ability to continue operating is uncertain over the next year. The company, which shifted from crypto payments into a World Liberty Financial (WLFI)-linked treasury model, disclosed major liquidity pressure alongside a large but illiquid token position.

WLFI Treasury Value Drops While Tokens Remain Locked

The firm holds 7.28 billion WLFI tokens valued at about $706 million, down from an estimated $1.46 billion cost basis. However, all tokens remain contractually locked, meaning the company cannot sell them for liquidity. About 3.53 billion tokens are restricted for 12 months, while 3.75 billion require further approvals and conditions before any release.

AI Financial reported only $10.5 million in cash, along with a $5.5 million working capital deficit and ongoing operating losses. Its quarterly revenue from fintech services stood at just $4.7 million.

Related-Party Exposure and WLFI Control Structure

The filing highlights deep ties between AI Financial and WLFI. WLFI executives sit on the company’s board, including chairman Zac Witkoff, while WLFI co-founder Zachary Folkman is also involved. WLFI holds a loan agreement of $15 million and owns up to 46% of AI Financial’s equity through shares and warrants.

Debt, Internal Control Issues, and Market Pressure

The company borrowed $15 million from WLFI in January, backed by token collateral that would transfer to WLFI in case of default. The filing also noted internal control weaknesses and restatements of past financials.