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

Odaily reports that AI Financial (formerly Alt5 Sigma), a publicly listed crypto company associated with U.S. President Donald Trump's family, has announced its plan to acquire Block Street, a crypto infrastructure startup, for up to $43 million. The startup was founded by Matthew Morgan, who currently serves as AI Financial's advisor and holds the positions of CEO and largest shareholder of Block Street.

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 had already commenced about 16 months prior.

The acquisition has raised market concerns over potential conflicts of interest, as Morgan both serves as an advisor to AI Financial and is the founder of the acquired company. He was previously briefly nominated as Chief Investment Officer in the deal between AI Financial and World Liberty Financial but was later reassigned to an unpaid advisory role.

In August, AI Financial reached an agreement with World Liberty Financial to incorporate approximately $1.5 billion in crypto assets onto its balance sheet, securing equity and a board seat in return. This partnership has 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 eager 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 dropped by over 90%, reflecting ongoing market skepticism toward the model of "crypto reserve publicly listed companies."

This transaction has also reignited debates over insider trading and governance structures within publicly listed companies. Similar cases have been increasingly surfacing in the crypto industry, with multiple listed companies criticized for mixing assets with related-party transactions, raising investor concerns over conflict of interest risks. (Fortune)