Trump family-linked crypto company AI Financial to acquire Block Street for up to $43 million

Odaily reported that AI Financial (formerly Alt5 Sigma), a publicly listed crypto company associated with U.S. President Donald Trump‘s family, announced it will acquire crypto infrastructure startup Block Street for up to $43 million. The company is founded and led by its current advisor Matthew Morgan, who also serves as its CEO and largest shareholder.

According to a filing submitted to the U.S. Securities and Exchange Commission (SEC), the deal was reached last Monday. Block Street was registered in October 2025, but Morgan stated that its operations actually began approximately 16 months ago.

The acquisition has raised concerns about potential conflicts of interest, as Morgan serves both as an advisor to AI Financial and as the founder of the company being acquired. He was previously briefly nominated as Chief Investment Officer in a transaction between AI Financial and World Liberty Financial, but later had his role adjusted to an unpaid advisor.

In August, AI Financial reached an agreement with World Liberty Financial to include approximately $1.5 billion in crypto assets on its balance sheet, in exchange for equity and a board seat. The partnership also positioned the company as part of the “Trump family crypto ecosystem.”

In an interview, Morgan denied that the transaction constitutes self-dealing, stating that Block Street focuses on tokenization and ICO infrastructure capabilities, areas AI Financial is seeking to enter. He mentioned that he had pitched the asset to several publicly listed companies and turned down acquisition offers with higher valuations.

However, since establishing ties with the Trump family’s crypto project, AI Financial's stock price has fallen by over 90%, reflecting ongoing market skepticism toward the “crypto reserve-type publicly listed company” model.

The transaction has also reignited controversy over insider transactions and governance structures within listed companies. Similar cases have frequently emerged in the crypto industry recently, with multiple public companies criticized for mixing operations with related-party transactions, triggering investor concerns over conflict-of-interest risks. (Fortune)