David Sacks and his venture capital firm sold off more than $200 million in cryptocurrencies and crypto-related stocks before he took on the position of AI and crypto chief at the White House, as outlined in a memorandum from the White House.
“You and Craft Ventures have sold over $200 million in positions tied to the digital asset sector, with $85 million being directly linked to you,” stated the memorandum dated March 5.
Crypto liquidation to mitigate conflicts of interest
The memo indicated that “significant measures” were implemented to minimize potential conflicts of interest prior to Sacks beginning his role as the White House AI and crypto head, in which part of his responsibility is to help establish a legal framework for the crypto industry.
He liquidated all “liquid cryptocurrency” assets in his portfolio and that of Craft Ventures— the investment firm he co-founded in 2017 — including investments in Bitcoin (BTC), Ether (ETH), and Solana (SOL) before President Trump’s inauguration on January 20.
The memo detailed the specific cryptocurrencies and crypto stocks that Sacks sold prior to Trump’s inauguration.
Sacks also sold off shares of publicly traded crypto firms, including Coinbase (COIN) and Robinhood (HOOD), along with interests in private digital asset companies.
Moreover, he exited his limited partner stake in Solana-focused Multichain Capital and crypto-centric venture firm Blockchain Capital. Simultaneously, Craft Ventures also reduced its stakes in Multichain Capital and Bitwise Asset Management.
Sen. Warren called on Sacks to confirm he no longer possesses crypto
The memorandum was issued just a day before Senator Elizabeth Warren from Massachusetts called on Sacks in a letter dated March 6 to verify that he no longer holds any digital assets, following his assertion in a post that he had divested from all cryptocurrency.
“Despite your public claims via X, it remains unclear exactly when you personally sold off BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether anyone close to you ‘might have held positions and sold into the recent price surge,” Warren wrote.
Since taking on this role, Sacks has been a prominent advocate on various issues within the crypto sector, emphasizing the need for a Strategic Bitcoin Reserve and cautioning against over-taxation of the industry.
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Recently, Sacks rejected the notion of implementing transaction taxes on cryptocurrency during an episode of the All In Podcast, after host Jason Calacanis suggested a 0.01% tax on every transaction.
“That’s typically how taxes begin. They are presented as quite small,” Sacks noted.
“When the income tax was introduced, it applied to just a thousand Americans, and lawmakers promised it would never affect middle-class individuals,” he added.
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