Sacks and his VC firm sold over $200M in crypto and stocks before WH role

David Sacks’ Crypto Sell-Off: A Move to Prevent Conflict of Interest

Introduction

David Sacks, a prominent venture capital firm owner, and his firm, Craft Ventures, sold over $200 million in crypto and crypto-related stocks before he took on the role of White House AI and crypto czar. A White House memorandum revealed this information, highlighting the efforts made to reduce potential conflicts of interest.

Crypto Sell-Off: A Preventive Measure

The memorandum, dated March 5, stated that "significant steps" were taken to minimize potential conflicts of interest. Sacks sold all "liquid cryptocurrency" from his portfolio, as well as Craft Ventures’ portfolio, which included holdings in Bitcoin (BTC), Ether (ETH), and Solana (SOL). This sell-off was completed before US President Donald Trump’s inauguration on January 20.

Cryptocurrency Holdings Sold

The memorandum outlined which cryptocurrencies and crypto-related stocks Sacks sold prior to Trump’s inauguration. These include:

• Bitcoin (BTC)
• Ether (ETH)
• Solana (SOL)
• Coinbase (COIN)
• Robinhood (HOOD)
• Limited partner interest in Solana-focused Multichain Capital
• Crypto-focused venture capital firm Blockchain Capital

Market Decline

Since Trump’s inauguration, the crypto market has experienced a significant decline, with many attributing this to Trump’s proposed tariffs and uncertainty over US interest rates. Bitcoin, which hit a new all-time high of $109,000 just hours before Trump’s inauguration, recently dipped below $80,000 on February 27, erasing all post-election gains. As of publication, Bitcoin is trading at $84,155, according to CoinMarketCap data.

Senator Warren’s Concerns

Sen. Elizabeth Warren urged Sacks to prove he no longer holds any digital assets in a March 6 letter, following Sacks’ claim in an X post that he sold off all his crypto. Warren stated, "Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge."

White House AI and Crypto Czar’s Role

As the White House AI and crypto czar, Sacks has been a vocal advocate for various issues in the crypto industry, including the importance of a Strategic Bitcoin Reserve and not over-taxing the crypto industry.

Recent Public Statements

In a recent episode of the All In Podcast, Sacks shut down the idea of crypto transaction taxes, stating, "That’s always how taxes start. They are described as being very modest… When the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people."

Conclusion

David Sacks’ decision to sell off his crypto holdings is a clear example of the measures taken to prevent conflicts of interest. As the White House AI and crypto czar, Sacks plays a crucial role in shaping the future of the crypto industry. His commitment to transparency and ethical practices is essential in maintaining public trust.

FAQs

Q: Why did David Sacks sell his crypto holdings?
A: Sacks sold his crypto holdings to prevent potential conflicts of interest and to ensure he is not profiting from his role as White House AI and crypto czar.

Q: What cryptocurrencies did Sacks sell?
A: Sacks sold Bitcoin (BTC), Ether (ETH), Solana (SOL), and other crypto-related stocks.

Q: Why is Senator Warren concerned about Sacks’ crypto holdings?
A: Senator Warren is concerned that Sacks may still hold digital assets and has urged him to prove he no longer has any holdings.

Q: What is Sacks’ role as White House AI and crypto czar?
A: Sacks is responsible for shaping the future of the crypto industry, including creating a legal framework for the crypto industry.