coindesk.com
AI Financial Corp.’s (AIFC) latest SEC filing shows the World Liberty Financial treasury company is holding a $706 million $WLFI token treasury it cannot yet sell, a related-party loan from World Liberty Financial itself, and a warning that its liquidity position raises substantial doubt about its ability to continue operating.
Formerly known as Alt5 Sigma, the company changed its name to AI Financial in April. It runs a fintech business of crypto payment processing and related services, while maintaining a significant $WLFI token treasury acquired through a $1.5 billion financing in 2025 tied to the Trump-linked World Liberty Financial ecosystem.
The company holds 7.28 billion $WLFI tokens worth $706 million, down from an acquisition cost of roughly $1.46 billion, while generating just $4.7 million in quarterly fintech revenue.
All 7.28 billion $WLFI tokens were contractually locked as of March 28, according to the filing. The company said 3.53 billion tokens are non-transferrable for 12 months, except for limited collateral, staking, and lending uses, while the larger 3.75 billion tranche is also subject to additional shareholder approval, charter amendment, and resale registration conditions before any release.
World Liberty Financial recently approved a broader plan to unlock over 62 billion $WLFI tokens held by insiders and early supporters over time. However, AI Financial’s 7.28 billion-token treasury remains subject to separate contractual lock-up restrictions under its purchase agreements, limiting its ability to convert its largest asset into liquidity.
AI Financial said it ended the quarter with $10.5 million in cash, but recurring operating losses and a $5.5 million working capital deficit raise "substantial doubt" about its ability to continue as a going concern within one year.
In other words, the company’s largest asset cannot be sold while it warns it may not survive the year.
In January, AI Financial borrowed $15 million from World Liberty Financial itself through a secured non-recourse loan, receiving net proceeds of roughly $14.2 million after prepaid interest and expenses.
The collateral was $WLFI tokens, according to the filing. If the borrower defaults, the filing states that the entire pledged collateral is forfeited to $WLFI.
What adds complexity is how both companies share executives, making the counterparty to the loan a related party.
AI Financial chairman Zac Witkoff is World Liberty Financial’s CEO and co-founder. Board member Zachary Folkman is also a $WLFI co-founder. $WLFI itself owns 1 million common shares in AI Financial, plus pre-funded warrants for 99 million more shares and warrants for another 20 million shares, a position equivalent to roughly 46% of the company’s fully diluted equity.
The company also disclosed material weaknesses in its internal controls, including the lack of a properly documented internal control framework, valuation errors related to business combination accounting, and errors that required a restatement of its 2024 financial statements.
Kraken, hired in August 2025 as discretionary manager for the $WLFI treasury, served only a 30-day term that was not renewed. The filing names no current external asset manager or custodian for the position.
AIFC closed Monday in New York at $0.91, down 9.6% on the day.