YEREVAN (CoinChapter.com) — David Sacks and his venture capital firm, Craft Ventures, sold over $200 million worth of cryptocurrency and crypto-related stocks before he started his position as the White House AI and crypto czar, according to a White House memorandum dated March 5.
The memo confirmed that Sacks took “significant steps” to eliminate potential conflicts of interest, including liquidating $85 million worth of digital assets directly tied to him. His role involves shaping the regulatory framework for cryptocurrencies, making the divestment crucial ahead of Donald Trump’s inauguration.
Complete Crypto Sell-Off to Avoid Conflict of Interest
David Sacks offloaded his entire liquid cryptocurrency portfolio, along with holdings in Craft Ventures, including Bitcoin (BTC), Ether (ETH), and Solana (SOL). The liquidation occurred before Trump was sworn in as the 47th U.S. president on Jan. 20.
Additionally, he sold stakes in publicly traded crypto companies, including Coinbase (COIN) and Robinhood (HOOD). He also exited private digital asset investments, such as Multichain Capital, which focuses on Solana-based projects, and Blockchain Capital, a venture capital firm specializing in crypto investments.
Trump’s Inauguration Marked a Market Decline
The cryptocurrency market saw a significant downturn after Trump took office, with many linking the decline to concerns over U.S. tariffs and interest rate policies.
On inauguration day, Bitcoin briefly hit a new all-time high of $109,000 but later dropped below $80,000 on Feb. 27, erasing post-election gains. As of this report, BTC trades at $84,355, according to TradingView.
Elizabeth Warren Demands Proof of Crypto Exit
Senator Elizabeth Warren has challenged David Sacks to verify his full divestment from digital assets. In a letter dated March 6, she questioned whether his associates might have held positions and sold during the market rally.
“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures exited Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge,’”
Warren wrote.
David Sacks Opposes Crypto Transaction Taxes
Since taking his White House role, Sacks has actively discussed crypto policies, advocating for a Strategic Bitcoin Reserve and tax regulations that avoid overburdening the industry.
On the All In Podcast, he rejected the idea of taxing crypto transactions after host Jason Calacanis suggested a 0.01% levy.
“That’s always how taxes start. They are described as being very modest,”
Sacks said.
“When the income tax started, it only applied to about a thousand Americans, and legislators swore it would never be applied to middle-class people.”
