Trump's Crypto Czar David Sacks Reveals US Government Missed Out On Gains Of Over $17 Billion By Selling Bitcoin Early
David Sacks, the White House’s “Crypto Czar,” highlighted a significant financial oversight by the U.S. government that cost it billions in gains.
What Happened: The Department of Justice (DOJ) could have secured over $17 billion had it retained its Bitcoin (CRYPTO: BTC) holdings instead of selling them prematurely, Sacks said.
The DOJ had sold approximately 195,000 Bitcoin for $366 million, a mere fraction of its current valuation.
"If the government had held the bitcoin, it would be worth over $17 billion today. That's how much it has cost American taxpayers not to have a long-term strategy," Sacks said.
Sacks, who previously served as PayPal COO and is a well-known venture capitalist, underscored the financial repercussions for taxpayers due to the absence of a long-term strategy.
Presently, the federal government possesses Bitcoin valued at $17.05 billion, as reported by blockchain analytics firm Arkham.
The responsibility for auctioning Bitcoin seized by the government falls to the U.S. Marshals Service.
Recently, President Donald Trump announced the formation of a “crypto strategic reserve” that will encompass Bitcoin, Ethereum (CRYPTO: ETH), XRP (CRYPTO: XRP), Solana (CRYPTO: SOL), and Cardano (CRYPTO: ADA).
Bitcoin’s current value stands at $87,104, having experienced a nearly 8% decline in the past 24 hours, although it has risen over 6.5% in the past week.
Why It Matters: The establishment of a Strategic Bitcoin Reserve by President Trump marks a pivotal shift in the U.S. government’s approach to digital assets.
This reserve, funded by Bitcoin obtained through forfeiture proceedings, is valued at approximately $17 billion. The initiative aims to bolster the U.S. position in the global cryptocurrency landscape without burdening taxpayers.
At a recent White House crypto summit, President Trump declared his ambition to make the U.S. a leading force in Bitcoin and digital assets. This commitment to embracing the cryptocurrency industry is further evidenced by the creation of the reserve, which is expected to be managed by the Treasury Department.
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