David Sacks, the newly appointed White House AI and Crypto Czar, along with his venture capital firm, Craft Ventures, divested over $200 million in cryptocurrency holdings and related stocks prior to assuming his government role. The move, confirmed in a recent White House memorandum, was undertaken to eliminate potential conflicts of interest as he helps shape federal cryptocurrency regulations.
A significant portion of this divestment came from Sacks’ personal holdings. The memorandum disclosed that out of the total $200 million in liquidated assets, approximately $85 million belonged directly to him. Most of these sales took place before Donald Trump’s inauguration on January 20, with the remainder occurring in the following days.
The document details that Sacks sold his stakes in major cryptocurrencies, including Bitcoin, Solana, and Ethereum, before Trump took office. Additionally, on January 22, he finalized the liquidation of his investment in the Bitwise 10 Crypto Index Fund (BITW), a fund that holds prominent digital assets such as Bitcoin, Ethereum, Solana, XRP, and Cardano—the same assets the U.S. government is reportedly considering for its Strategic Bitcoin Reserve.
Beyond direct crypto sales, Sacks also divested from companies and funds with significant exposure to the digital asset market. He sold off shares in Coinbase and Robinhood, both heavily involved in cryptocurrency trading, and withdrew his financial interests as a limited partner in investment firms like Blockchain Capital and Multicoin Capital. In a parallel move, Craft Ventures offloaded its holdings in Bitwise and Multicoin, further distancing itself from potential conflicts. Additionally, Sacks initiated the sale of his stakes in 90 other crypto-focused venture capital funds, including Sequoia Funds.
Despite these substantial divestments, the memorandum acknowledged that Craft Ventures still maintains financial interests in select crypto-related funds, including Lightning Labs and BitGo. Sacks also retains stakes in investment groups like AL Ventures and Beldore Capital Fund, signaling that while he has reduced direct exposure, he has not severed all ties to the crypto sector.
His official signing of the White House memorandum documenting his divestments came just one day before Senator Elizabeth Warren publicly called for confirmation of his financial disengagement from cryptocurrency. Warren had previously raised concerns on March 6 regarding his involvement in digital assets, particularly in light of the U.S. government’s recent creation of a Strategic Bitcoin Reserve and other digital asset holdings.
The financial world will be closely watching Sacks as he navigates his role in shaping federal crypto policies. His past involvement in the industry, coupled with his significant divestments, highlights the balancing act required of government officials managing regulatory frameworks in industries where they once had direct financial interests.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist