David Sacks, the tsar of the cryptography and artificial intelligence of President Donald Trump, was criticized this week after the accusations that he could benefit financially from the Trump announcement of a strategic reserve of Crypt of the USA.
The initiative, on which Trump shared details on Sunday, would involve the government that celebrates a reserve of digital assets, including Bitcoin (BTC), Ethereum (Eth), XRP, Cardano (ADA) and Solana (Sol). The critics expressed concern that people within the administration with ties with these assets could win from the move.
Sacks, a risk capitalist with previous cryptographic investments, quickly became a focal point of the controversy. During the weekend and until Monday, he replied in X (previously Twitter), rejecting accusations that he had a financial interest in politics. He affirmed that he had diverted from all his personal holdings related to cryptography before joining the administration, including his participation in Mulicoin Capital, an investment firm focused on cryptographic.
However, a persistent question was if Craft Ventures, the Risk Capital firm of Sacks, had retained its investment in Bitwise, an administrator of cryptography index funds that Sacks helped finance in 2017. Bitwise’s investment products include an ETF that has all the assets mentioned in the Trump strategic reserve plan, raising concerns that could benefit from of the government.
On Tuesday, a source close to Craft Ventures confirmed to COINDESK that the background left its position towards Bitwise before the start of the president’s second administration. The Craft Ventures website was also updated on Tuesday to reflect that it had left its Bit A Bit investment in January 2025.
Artisanal companies, Bitwise and bags have not yet publicly commented on the apparent exit. The source close to Craft Ventures told COINDESK that the company has not commented publicly so as not to interrupt the authorization process of the Sacks government, which is currently in progress.
In his defense of social networks, Sacks dismissed the entire controversy. “The accusation that people who already have much success in business go to the government to earn more money is a lazy and stupid narrative.” He wrote. “As I have learned, serving in the government implies a substantial interruption and the disinvestment of one’s commercial interests.”
The debate on the Trump proposal reserve continues to divide the cryptographic community. Some of the president’s cryptographic supporters argue that a bitcoin only reserve would be preferable, while others question if the government should be involved in digital assets, arguing that government intervention in cryptographic space contradicts the decentralized ideals of the industry.
Conflict questions also continue to turn around the president. The cryptographic startup backed by Trump World Liberty Financial has a treasure of around $ 500 million in cryptographic assets, including some that appear in its Sunday reserve announcement.
