David Sacks Sells Over $200M in Crypto Holdings Before Trump’s Inauguration

David Sacks, a former adviser to Donald Trump on artificial intelligence and cryptocurrencies, along with his venture capital firm, Craft Ventures, has offloaded over $200 million in digital asset-related holdings, according to a White House memo.

The memo, issued by White House counsel David Warrington on March 5, revealed that Sacks and Craft Ventures liquidated their cryptocurrency assets, including Bitcoin, Ethereum, and Solana, before Trump took office. Additionally, Sacks sold his shares in Coinbase (NASDAQ: COIN) and Robinhood (NASDAQ: HOOD), along with limited-partner stakes in leading crypto investment funds Multicoin Capital and Blockchain Capital.

Craft Ventures also divested its holdings in Multicoin Capital and Bitwise Asset Management, further distancing itself from the crypto industry. The report highlighted that at least $85 million of the total divestments were directly linked to Sacks.

The sell-off came at a significant financial cost, as Sacks, classified as a special government employee, was not eligible for capital-gains tax deferrals. His liquidation resulted in a substantial tax burden, underlining the challenges faced by government appointees with private sector investments.

The move raises speculation about the regulatory stance of the Trump administration on cryptocurrencies, given Sacks’ previous deep involvement in the sector. While the reasons behind the divestment remain unclear, the scale of the sell-off suggests a strategic shift amid changing political and regulatory landscapes.

This development marks one of the largest liquidations by a high-profile investor in the crypto industry, reflecting broader trends of caution among institutional players navigating government oversight and tax implications.