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In a recent report by Fortune, it was revealed that David Sacks, the newly appointed artificial intelligence (AI) and crypto czar under President Donald Trump, has divested more than $200 million in crypto holdings since assuming his role.
Memo Reveals Sacks’ $85 Million Divestiture
According to a memo from the Office of Government Ethics, Sacks has personally divested at least $85 million in cryptocurrencies, including major players like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Prior to his appointment, both he and his investment firm, Craft Ventures, held “substantial positions” in these digital currencies, as well as stocks in notable companies such as Robinhood and Coinbase.
Additionally, Trump’s crypto czar was a limited partner in several prominent venture capital funds, including Multicoin Capital and Blockchain Capital.
Despite the massive divestiture, Sacks and Craft Ventures reportedly maintain equity in various companies within the crypto sector. Notably, Sacks’ shares in BitGo, a crypto custody firm, and Lightning Labs, a Bitcoin protocol developer, together account for approximately 3.6% of his total assets.
The US government has agreed to waive potential conflicts of interest concerning Sacks’ ongoing investments in these firms, allowing him to continue his duties without immediate concern for ethical violations.
Trump’s Crypto Czar Denies Potential Conflicts Of Interest
In a post on X (formerly Twitter) earlier this month, Sacks asserted, “I sold all my cryptocurrency (including BTC, ETH, and SOL) prior to the start of the administration.”
This statement was made in response to growing criticisms that he might be blending personal financial interests with governmental responsibilities in the crypto space.
The controversy intensified following Trump’s announcement that certain cryptocurrencies, including Solana and Bitcoin, would be included in a proposed national crypto reserve.
Critics, including Ryan Grim, a political commentator, accused Sacks of leveraging his position for personal gain, suggesting that the government’s strategic moves in the crypto market amounted to a “direct transfer of wealth from the US treasury to David Sacks and other crypto barons.”
In defense of Sacks, several crypto executives have spoken out. Cameron Winklevoss, co-founder of the crypto exchange Gemini, praised Sacks’ commitment to his role, stating, “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.”
Sacks was appointed to his role in December, a strategic move by Trump, who stated that Sacks would help shape policies regarding the regulation of both artificial intelligence and cryptocurrencies.
Featured image from DALL-E, chart from TradingView.com
