David Sacks and Venture Firm Sell $200 Million in Crypto and Stocks Before White House Role

David Sacks, the newly appointed White House AI and crypto czar, and his venture capital firm, Craft Ventures, took significant steps to avoid potential conflicts of interest before Sacks assumed his role in the Biden administration. A White House memorandum, dated March 5, revealed that Sacks and Craft Ventures sold over $200 million in crypto and crypto-related stocks, including holdings in Bitcoin (BTC), Ether (ETH), and Solana (SOL), prior to his appointment.

Divesting to Prevent Conflicts of Interest

The memorandum disclosed that of the total amount, $85 million was directly tied to Sacks’ personal holdings. These divestments were made as part of the effort to reduce any conflicts of interest and ensure transparency as Sacks prepared to take on his position, where his role includes helping shape a legal framework for the evolving crypto industry.

Sacks liquidated all of the “liquid cryptocurrency” in his portfolio, as well as those held by Craft Ventures, which he co-founded in 2017. This included significant stakes in major cryptocurrencies like Bitcoin, Ether, and Solana. Additionally, the firm offloaded its investments in publicly traded crypto-related companies such as Coinbase (COIN) and Robinhood (HOOD), as well as stakes in private firms involved in digital assets. Sacks also sold his interest in Solana-focused Multichain Capital and the crypto-centric Blockchain Capital.

Market Decline and the Timing of Divestment

The timing of these divestments aligns with a significant downturn in the cryptocurrency market. Since former President Donald Trump’s inauguration on January 20, 2025, Bitcoin and other cryptocurrencies have seen major declines. Although Bitcoin reached an all-time high of $109,000 just before Trump’s swearing-in, it recently dipped below $80,000 by February 27, 2025, erasing all of its post-election gains. At the time of publication, Bitcoin was trading at around $84,155, according to CoinMarketCap.

This decline came amid broader market downturns, including concerns over Trump’s proposed tariffs and ongoing uncertainty about U.S. interest rates.

Scrutiny from Senator Elizabeth Warren

The news of Sacks’ divestment comes amid scrutiny from some lawmakers. On March 6, U.S. Senator Elizabeth Warren (D-MA) wrote a letter to Sacks, asking him to prove that he no longer holds any digital assets. This came after Sacks publicly claimed on X (formerly Twitter) that he had sold off all of his crypto holdings.

Warren's letter, which questioned the timing of Sacks' divestment, specifically asked when exactly Sacks had divested from Bitcoin, Ether, and Solana, and whether individuals close to him may have profited from recent price surges in these assets. She also raised concerns about Craft Ventures' divestment from firms like Bitwise Asset Management and questioned whether any potential insider trading had occurred.

Sacks’ Advocacy on Crypto Industry Issues

Since taking on his role in the White House, David Sacks has become a vocal advocate for the cryptocurrency industry. He has spoken out on several major topics, including the creation of a Strategic Bitcoin Reserve and opposing excessive taxation on crypto transactions. On a recent episode of the All In Podcast, Sacks addressed the idea of taxing crypto transactions, dismissing a proposal to impose a 0.01% tax on every crypto transaction.

Sacks argued that such modest taxes tend to grow over time, drawing comparisons to the introduction of income tax, which initially applied to only a small group of Americans but eventually expanded to a much wider base.

Conclusion

David Sacks’ significant divestment in crypto assets ahead of his White House role underscores the growing importance of transparency and avoiding conflicts of interest in government positions. While the crypto market faces uncertainty, Sacks’ moves show an effort to maintain credibility while helping to shape future regulations for the industry. However, the scrutiny over his personal and professional connections to crypto investments, including inquiries from Senator Warren, illustrates the ongoing challenges of balancing industry involvement with public office.

As Sacks continues to advocate for the crypto sector, his actions will likely remain under close watch as policymakers work to define the regulatory framework that will guide the future of digital assets in the U.S.