Written by: BitpushNews Mary Liu
Recently, a memo released by the White House revealed a major move by Trump's AI and encryption consultant David Sacks before taking office: selling digital asset-related investments worth more than $200 million.
Clearance Details
According to a memo written by White House Counsel David Warrington, Sacks and his venture capital firm Craft Ventures liquidated their holdings in cryptocurrencies and related assets before taking office.
The document shows that at least $85 million is "directly attributed to Sacks." The assets sold include mainstream cryptocurrencies such as Bitcoin, Ethereum, Solana, as well as Bitwise 10 Crypto Index Fund shares and Coinbase and Robinhood stocks.
Additionally, Sacks has begun liquidating his holdings in private digital asset firms, including limited partner interests in crypto investment funds such as Multicoin Capital and Blockchain Capital.
Sacks explained on a recent episode of the All-In podcast that the sell-off was to avoid "any perception of a conflict of interest." "I don't want to give any perception of a conflict of interest, especially with me about to take on a government role," he said.
How “luxurious” is Sacks?
David Sacks is a Silicon Valley legend and one of the core members of the "PayPal Gang". He joined Confinity (later renamed PayPal) in 1999 as Chief Operating Officer and promoted PayPal's transformation from security software to electronic payment platform. In 2002, PayPal was successfully listed, and Sacks became a star in Silicon Valley.
After PayPal, Sacks founded the enterprise collaboration platform Yammer in 2008 and sold it to Microsoft for $1.2 billion in 2012. In 2017, he co-founded Craft Ventures, a venture capital firm that focuses on early-stage SaaS and market platform investments, with more than $3.3 billion in assets under management. In addition, he has also ventured into film production, investing in several well-known films such as Thank You for Smoking and Dali's Land.
As an angel investor, Sacks' investment portfolio includes more than 20 technology unicorns such as Facebook, SpaceX, Uber, Airbnb, etc. His investment vision is precise and covers a wide range of fields, including artificial intelligence and cryptocurrency.
Sacks is also one of the four hosts of the popular podcast "All-In", discussing technology, business and politics with Jason Calacanis, Chamath Palihapitiya and David Friedberg. Since its launch in 2020, the podcast has attracted a large number of subscribers and has become an important voice in the technology circle.
Although Sacks' net worth has never been made public, Fortune magazine estimates that it is estimated to be around $2 billion by the end of 2024. His wealth mainly comes from his early equity in PayPal, the sale of Yammer, investment income from Craft Ventures, and his shares in several unicorn companies. In addition, he has also been involved in the cryptocurrency field, investing in projects such as BitGo and Lightning Labs.
Trump administration's encryption adviser
In 2024, Sacks was appointed as the Trump administration's AI and encryption advisor, responsible for formulating digital asset-related policies. He discussed with other key lawmakers at the White House Crypto Summit how to make the United States a global leader in blockchain technology. Sacks advocates reducing excessive regulation of cryptocurrencies and actively promotes regulatory discussions on stablecoins, decentralized finance (DeFi), and central bank digital currencies (CBDCs).
On March 6, Trump signed an executive order announcing that the United States would establish a strategic Bitcoin reserve, which would be funded entirely through tokens from criminal and civil forfeiture cases to ensure that taxpayers would not be burdened. In addition, the order also created the U.S. Digital Asset Reserve, managed by the Treasury Department, to hold other confiscated cryptocurrencies. Sacks, as Trump's AI and encryption advisor, played a key role in this policy making.
At least six members of Trump’s cabinet own Bitcoin
It is worth noting that several members of Trump’s cabinet hold Bitcoin or other crypto assets.
According to financial disclosures from December 2024 to January 2025, six of the 22 cabinet members officially declared Bitcoin holdings, including Health Secretary Robert F. Kennedy ($1 million to $5 million), Finance Secretary Scott Bessant ($250,000 to $500,000), and Transportation Secretary Sean Duffy ($550,000).
Manipulation of doubt
The potential conflict of interest within the Trump administration in the crypto space has recently come to the forefront. Sacks said that he had cleared all cryptocurrencies before serving as an advisor. Well-known economist Peter Schiff publicly questioned Sacks:
“What about your family, friends, and former colleagues? I’m sure they hold these tokens as well, though they may have sold in the market rally following the policy announcement. I’m also sure you personally benefited greatly from Trump’s victory, given the hype surrounding his victory, including your nomination, and the campaign promises he made.”
Although some cabinet members have pledged to divest crypto assets to avoid conflicts of interest, their holdings may still influence policy making, drawing criticism from many Democrats.
Senior Democrat Elizabeth Warren recently publicly called for the disclosure of the identities of those who helped Trump determine the strategic Bitcoin reserve assets and confirmed whether these people were subject to conflict of interest laws. She said that "these actions may benefit billionaire investors, Trump administration insiders and speculators, while middle-class families will be harmed."
