David Sacks Divested From Bitwise Before Trump’s Crypto Reserve Announcement
David Sacks, a key figure in Donald Trump’s administration for crypto and AI, faces scrutiny over potential financial gains from Trump's proposed U.S. strategic crypto reserve. This initiative involves holding digital assets like Bitcoin, Ethereum, XRP, Cardano, and Solana.
Key points include:
- Critics allege conflicts of interest due to Sacks' prior investments.
- Sacks claims he divested from personal crypto holdings before joining the administration.
- Concerns arose about Craft Ventures' investment in Bitwise, which manages products including an ETF tied to the proposed reserve assets.
- A source confirmed Craft Ventures exited its Bitwise position in January 2025, prior to Trump's second administration.
- Sacks defended his actions, dismissing the allegations as unfounded and stating government service typically requires significant business divestiture.
- The crypto community remains divided on the reserve proposal, with some advocating for a Bitcoin-only approach.
- Questions regarding potential conflicts of interest extend to Trump, whose startup holds approximately $500 million in crypto assets.