Key Takeaways
- David Sacks sold over $200 million in digital assets including Bitcoin and Ethereum before his White House role.
- Sacks maintains limited exposure to the crypto industry through Craft Ventures’ venture capital funds.
The White House disclosed that David Sacks, Trump’s AI and crypto czar, and his venture firm Craft Ventures divested over $200 million in crypto assets and related holdings before taking on his new role. At least 85% was personally attributed to Sacks.
The revelation came in a memorandum dated March 5, granting Sacks a limited ethics waiver to participate in digital asset policy matters.
“Altogether, you and Craft Ventures have divested over $200 million of positions related to the digital asset industry, of which at least $85 million is directly attributable to you,” the memo states.
Sacks indeed disclosed this information when joining The All-In Podcast last week. The White House crypto tsar faced numerous allegations that he exploited his position for personal gain in crypto.
“We cleared that before day one, paid taxes on it, and basically said there wouldn’t be a conflict,” he said, dismissing allegations of using his government position to benefit personally from crypto market movements.
The divestments, completed before the start of the President’s second term on January 20, 2025, included liquid crypto assets such as Bitcoin, Ethereum, and Solana, as well as positions in the Bitwise 10 Crypto Index Fund. Sacks also sold his directly held stock in public companies Coinbase and Robinhood, along with shares in private digital asset companies.
Sacks liquidated his limited partner interests in crypto-focused investment funds, including Multicoin Capital and Blockchain Capital. His firm, Craft Ventures, also sold its stakes in Multicoin Capital and Bitwise Asset Management.
The tech investor still maintains some exposure to the digital asset industry through venture capital funds managed by Craft Ventures, where he serves as both a general and limited partner. These remaining holdings include stakes in BitGo and Lightning Labs representing less than 2.5% and 1.2% of his total investment assets, respectively.
As a special government employee, Sacks was not eligible for tax relief typically available through certificates of divestiture. He also began selling interests in approximately 90 venture capital funds, including Sequoia, which may hold minor digital asset positions.
The White House granted Sacks a limited ethics waiver to participate in digital asset policy matters, despite his retaining minor holdings in private crypto companies through Craft Ventures.
Sacks has agreed not to acquire new digital asset holdings during his tenure, which is limited to 130 days or fewer annually as a special government employee.