As Trump's return to the White House looms on the horizon, venture capitalist David Sacks has liquidated over $200 million in cryptocurrency and related assets to clear potential conflicts of interest before assuming his role as the administration's AI and crypto czar.
According to a March 5, 2025 White House memorandum, Sacks personally divested $85 million in holdings, including all liquid cryptocurrency positions in Bitcoin, Ethereum, and Solana, along with stocks in crypto-adjacent companies Coinbase and Robinhood.
Sacks sheds $85 million in crypto assets to clear conflicts before entering Trump's administration as digital markets czar.
The divestment, completed ahead of Trump's January 20, 2025 inauguration, extends beyond Sacks' personal portfolio. His venture capital firm, Craft Ventures, accounted for $115 million of the total divestment, selling interests in Multicoin Capital, Bitwise Asset Management, and stakes in approximately 90 venture funds with significant crypto exposure.
Despite the substantial liquidation, Sacks maintains some indirect exposure through Craft Ventures funds. These include a less than 2.5% stake in BitGo and approximately 1.2% in Lightning Labs, holdings characterized as "highly illiquid" and difficult to relinquish completely. Sacks received a limited ethics waiver that permits his participation in digital asset policy matters despite these remaining investments.
Sacks has indicated plans to sell these remaining minor stakes in crypto-related companies.
The divestment has drawn scrutiny from political quarters, with Senator Elizabeth Warren demanding proof of the sales and questioning their timing. The liquidation incurred significant tax costs for Sacks while removing direct conflicts of interest from his policy work. The move comes as Bitcoin has fallen nearly 25% from its January peak to around $80,000, potentially affecting the value of his divested assets.
In his new role, Sacks is advocating for a Strategic Bitcoin Reserve and warning against excessive taxation of digital assets, positions that have generated mixed reactions across the crypto community.
Some view his divestment as signaling a favorable regulatory shift for digital assets, while others remain skeptical about potential undisclosed holdings.
The crypto industry is closely monitoring how Sacks' personal financial decisions might influence his policy approach, particularly as he pushes for regulatory reforms that could significantly impact digital asset markets under the new administration.
