- White House Crypto and AI Czar David Sacks claims the U.S. government missed out on approximately $16.6 billion by selling seized Bitcoin instead of holding it.
- Trump Administration plans to host its first-ever crypto summit Friday, with Sacks expected to lead the event amid ongoing discussions about a strategic crypto reserve.
- President Trump has expanded his proposed national cryptocurrency reserve beyond Bitcoin to include Ethereum, Solana, XRP, and Cardano.
The U.S. government could have transformed $366 million in Bitcoin seizures into a $17 billion windfall had it implemented a long-term holding strategy, according to White House Crypto and AI Czar David Sacks. Sacks highlighted this missed opportunity just one day before the administration’s inaugural cryptocurrency summit at the White House.
In a Thursday post on X, Sacks calculated that the approximately 195,000 Bitcoin sold by federal authorities would have appreciated by 4,500% to reach a current value of $17 billion. The South African-American entrepreneur and Craft Ventures co-founder argued that “it has cost American taxpayers not to have a long-term strategy.”
The timing of Sacks’ observation is significant as industry leaders prepare to gather at what sources familiar with the matter told Decrypt will be the first-ever White House “crypto summit.” Sacks himself is expected to lead this meeting, which replaces earlier plans for a formal council due to reported infighting among various cryptocurrency factions.
The federal government’s relationship with seized cryptocurrency dates back to 2014, when authorities conducted their first major Bitcoin auction. According to a resource compiled by Jameson Lopp, Casa co-founder and CTO, that initial sale of 29,657 Bitcoin generated approximately $18.7 million—assets that would be valued at $2.6 billion in today’s market.
President Trump’s cryptocurrency plans have evolved significantly since his initial campaign promises. After initially courting voters with proposals for a national Bitcoin reserve, Trump recently named five cryptocurrencies for inclusion in what he now calls a “strategic crypto reserve.” Beyond Bitcoin, the expanded list includes Ethereum, Solana, XRP, and Cardano (ADA)—all digital assets that reportedly faced existential threats under the previous administration.
This multi-coin approach represents a shift from Trump’s earlier Bitcoin-focused messaging. During his address at a Bitcoin conference in Nashville last summer, Trump emphasized keeping Bitcoin the government had already seized to position the country as a “Bitcoin superpower.”
Not everyone supports the multi-cryptocurrency approach. Coinbase CEO Brian Armstrong stated on X that a Bitcoin-only reserve would “probably be the best option” for simplicity’s sake. Similarly, Commerce Secretary Howard Lutnick reportedly said earlier this week that “a Bitcoin strategic reserve is something the President’s interested in,” suggesting a potential announcement about the initiative on Friday.
As the White House prepares for tomorrow’s crypto summit, Sacks’ personal cryptocurrency investments have drawn scrutiny. The billionaire has said he divested his holdings in Bitcoin, Ethereum, and Solana, along with an investment in a cryptocurrency asset manager, addressing potential conflict of interest concerns ahead of his role in shaping national cryptocurrency policy.
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