White House AI and Crypto Czar David O. Sacks (photo credit: Associated Press)
Former "White House AI and Crypto Czar" David O. Sacks, appointed during the Trump administration and a close ally of Elon Musk, criticized the U.S. government on June 6 via social media for prematurely selling Bitcoin over the past decade, resulting in a $17 billion loss for taxpayers.
Key Details of the Bitcoin Sale
- Bitcoin Sold: 195,000 BTC
- Revenue Generated: $366 million
- Current Value (if held): Over $17 billion
- Bitcoin Price at Time of Report: ~$90,245/BTC
Sacks emphasized in his post:
"The lack of a long-term strategy cost American taxpayers dearly. Had the government held these assets, their value would now exceed $17 billion."
Trump's Strategic Bitcoin Reserve Plan
On March 7, Sacks clarified on X (formerly Twitter) that former President Trump signed an executive order to establish a strategic Bitcoin reserve. However, this reserve would only include Bitcoin seized through criminal or civil asset forfeitures, not additional purchases.
Key Distinctions:
- "Storage" vs. "Reserve": The policy focuses on retaining existing seized crypto (storage) rather than actively accumulating it (reserve).
- Market Impact: Bitcoin briefly dipped below $86,000 (a 5% drop) following the announcement.
FAQs
Q1: How much Bitcoin did the U.S. government sell?
A1: Approximately 195,000 BTC, generating $366 million in revenue.
Q2: What’s the opportunity cost of these sales?
A2: If held, the Bitcoin would be worth over $17 billion today.
Q3: Will the U.S. government buy more Bitcoin?
A3: No. The proposed reserve only includes seized assets, per Sacks’ clarification.
👉 Why strategic crypto reserves matter for national economies
Analysis
The premature sale highlights broader issues in government asset management and the need for crypto-forward policies. While the U.S. aims to leverage seized crypto, critics argue proactive reserves could better hedge against economic volatility.
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