David Sacks, AI and czar for the White House, has criticized the media for what he described as an unfair portrayal of his decision to liquidate his digital asset holdings.
He clarified that the move was not a reflection of lost confidence in digital assets but a necessary step to comply with government ethics rules.
Sacks Speaks Out
In a March 18 post on X, Sacks responded to reports claiming he “dumped” his crypto investments, stating:
“Why does the media always want to portray crypto in the worst light? I did not ‘dump’ my cryptocurrency; I divested it.”
According to the U.S. Office of Government Ethics, officials with personal digital asset investments must liquidate their holdings before participating in crypto-related policymaking.
Earlier this month, Sacks confirmed that he had sold all his digital assets. A March 5 government memo revealed that he and his investment firm, Craft Ventures, divested over $200 million in crypto holdings following his appointment by President Donald Trump. The 52-year-old personally offloaded at least $85 million worth of crypto before taking on his role.
The two previously had notable stakes in the digital asset industry, including stock in Robinhood and Coinbase and limited partnerships in venture capital firms Multicoin Capital and Blockchain Capital.
While Craft Ventures retains investments in some crypto startups, Sacks no longer has direct exposure to digital assets. His remaining indirect interests include stakes in the crypto custody firm BitGo and Bitcoin protocol developer Lightning Labs, representing approximately 2.5% and 1.1% of his total assets.
Public Scrutiny and Defence
The crypto czar came under scrutiny following Trump’s early March announcement that certain cryptocurrencies, including Solana, would be part of a national digital assets reserve. Critics suggested that, given his role, he was using the opportunity to add to his portfolio. The skepticism grew when the President officially authorized the creation of a strategic Bitcoin reserve and a digital assets stockpile later that week.
Responding to these claims, the official defended himself by announcing to the public that he had already sold much of his holdings to avoid any conflicts of interest.
His argument was also supported by prominent figures in the crypto industry, including Cameron Winklevoss, co-founder of Gemini, who stated on X, “He is doing tremendous work and will not be sharing in any of the economic upside to avoid even the slightest appearance of a conflict.”
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