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In a significant move, David Sacks, the appointed AI and crypto czar under the Trump administration, has divested over $200 million in digital asset investments, both personally and through his venture firm, Craft Ventures, prior to assuming his official duties. This divestment was detailed in a memo released by the White House, which indicated that of the total assets sold, at least $85 million can be directly linked to Sacks.
The memo, consisting of 11 pages, was notably longer than a two-page disclosure presented by Robert F. Kennedy Jr., the newly appointed Secretary of Health and Human Services. Sacks’ substantial divestments stand in stark contrast to the previous administration’s lack of attention to potential conflicts of interest, highlighting a new approach in the current administration.
President Trump, in addition to his extensive portfolio of real estate, holds significant shares in Trump Media & Technology Group, the parent organization of Truth Social. He has also ventured into various cryptocurrency projects whose values are susceptible to fluctuations based on governmental regulations. Furthermore, Elon Musk, a key advisor to the President and CEO of Tesla and SpaceX, is well-positioned to influence policy in ways that could benefit his business interests, including potential regulatory outcomes for the tech and crypto sectors.
Notably, three days before his inauguration, Trump introduced a memetoken called $TRUMP through his entity, CIC Digital LLC, which controls 80% of the token’s total supply. Additionally, the Trump family is set to receive a substantial portion of the revenue from World Liberty Financial, a crypto bank established last year.
Musk also oversees the Department of Government Efficiency (DOGE) and has contracts that tie him closely to government funding, such as a $1.8 billion agreement with the National Reconnaissance Office for the development of a satellite network.
Further evidencing the intertwining of government and crypto interests, several cabinet members have also reportedly invested heavily in cryptocurrencies. Commerce Secretary Howard Lutnick, who is transitioning from his role at Cantor Fitzgerald, allegedly gained hundreds of millions due to his connections with the cryptocurrency tether.
Responses from representatives of Musk, the White House, and the Commerce Department concerning these developments have not been forthcoming at this time.
Sacks’ Divestments Explained
Sacks, who has gained prominence as one of the co-hosts of the All-In podcast, shared in a recent episode that his decision to sell approximately $200 million in cryptocurrency holdings stemmed from a desire to avoid any perception of conflict. This comes amid scrutiny from various public officials, including Senator Elizabeth Warren, who expressed concerns regarding potential conflicts of interest and urged Sacks to reveal his financial investments in major cryptocurrencies such as bitcoin, ether, and solana.
Following this backdrop, Trump enacted an executive order on March 6 to formally establish a Strategic Bitcoin Reserve, with explicit instruction that it would exclude other digital currencies. Sacks indicated that this reserve would be funded by assets seized in criminal and civil forfeiture cases, thereby ensuring no financial burden on taxpayers. The executive order also called for the creation of a U.S. Digital Asset Stockpile to be managed by the Treasury Department, designed to hold other confiscated digital currencies.
As outlined in Sacks’ ethics filing, he and Craft Ventures have divested from all liquid cryptocurrency assets, including significant holdings such as bitcoin, ether, solana, as well as shares in crypto exchanges Coinbase and Robinhood. Additionally, he has started to liquidate his interests in private digital asset firms and investment funds that focus on the cryptocurrency sector.
While Sacks has significantly reduced his holdings, he still maintains a few minor positions related to digital assets, which comprise less than 0.1% of his total investment portfolio, with plans for their sale being described as “certain and imminent.”
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