White House Crypto Czar David Sacks, previously adviser to then-President Donald Trump, has dumped over $200 million in his cryptocurrency investments. The move was a response to mounting criticism of potential conflict-of-interest charges surrounding his investment goals in the space of crypto assets. The sell-off, as the White House emphasized in issuing a recently-made-public memorandum, was after virtue-based leadership pledged by Sacks.
Details of the Divestment
Sacks’ sale had included significant sales of other cryptocurrencies. He liquidated all of his liquid crypto positions, which largely included Bitcoin, Ethereum, and Solana, before Trump started the second term on January 20, 2025. He also sold his stake in the Bitwise 10 Crypto Index Fund on January 22, 2025.
In addition to cryptocurrencies, Sacks also exchanged public company stocks such as Coinbase and Robinhood. He also exchanged private digital asset companies and limited partner interests in some cryptocurrency investment firms such as Multicoin Capital and Blockchain Capital.
Reasons for the Divestment
The divestment was largely intended to avoid a conflict of interest. Sacks faced criticism from American lawmakers, spearheaded by Senator Elizabeth Warren, regarding his crypto assets and the timing of the latter relative to his public statements. Warren’s letter came after Sacks’ social media announcement that he disposed of all his crypto assets. The White House released the memo in response to his divestment a day before Warren’s letter requesting an explanation of his ownership status.
Sacks’ divestitures are worth at least $85 million traceable to him. He incurred a tax cost since special government employees like Sacks are not eligible for certificates of divestiture.
Impact on the Crypto Landscape
Sacks’ sale is part of the big picture of how the U.S. regulates cryptocurrencies. As the Crypto Czar, he is there to help the government design a regulatory agenda for digital currencies. His divestment of his interests can provide the tone on the appropriateness of attempts at regulation within the crypto space.
Despite all these divestments, Sacks confirms that his firm, Craft Ventures, still maintains economic interests in some of the crypto-only funds such as Lightning Labs and BitGo. Such ongoing involvement is concerning in terms of the final impact on Sacks since he remains a power broker in issues of U.S. cryptocurrency policy.
