By Key Points
- David Sacks Crypto Sale Shocks Market With $200M Dump
- Move aimed at avoiding conflicts before joining the White House.
- Holdings included Bitcoin, Ethereum, and Solana.
- Sen. Warren demands proof of full divestment.
David Sacks, co-founder of Craft Ventures and now the White House AI and crypto czar, liquidated over $200 million in cryptocurrency and related stocks before stepping into his government role. The White House confirmed this move in a March 5 memorandum, emphasizing that it was necessary to prevent conflicts of interest.
BREAKING: WHITE HOUSE MEMO CONFIRMS DAVID SACKS SOLD $200 MILLION #BITCOIN AND CRYPTO BEFORE TAKING ADMIN ROLE pic.twitter.com/rGkx87dYM4
— The Bitcoin Historian (@pete_rizzo_) March 14, 2025
“You and Craft Ventures have divested over $200 million of positions related to the digital asset industry, of which $85 million is directly attributable to you,” the memo stated.
Sacks’ liquidation included holdings in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). He also sold shares in major crypto-related firms like Coinbase (COIN) and Robinhood (HOOD) and divested from private companies focused on digital assets. Additionally, Craft Ventures exited its investments in Multichain Capital and Bitwise Asset Management.
The timing of Sacks’ sell-off was notable. Bitcoin hit an all-time high of $109,000 just before Donald Trump’s inauguration as the 47th U.S. President. However, since then, the crypto market has faced a downturn, with BTC slipping below $80,000 by February 27. Many blame this decline on Trump’s proposed tariffs and uncertainty over U.S. interest rates—a situation reminiscent of the 2017 Bitcoin rally following trade war tensions. (Read more)
🚨NEW: 🇺🇸 AI & Crypto Czar @davidsacks47 REJECTS conflict of interest allegations, calling them a “lazy and stupid narrative.”
Sacks says he sold all $200M of his crypto positions before taking his UNPAID job as a consultant for the government. pic.twitter.com/6lbWAh8dlQ
— CryptosRus (@CryptosR_Us) March 8, 2025
Senator Warren Demands Proof of Divestment
Despite Sacks’ claims of full divestment, Senator Elizabeth Warren has demanded additional proof. In a letter dated March 6, she questioned the timeline of his asset sales and whether people close to him may have benefited from the recent crypto surge.
“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL,” Warren wrote.
Since taking office, Sacks has been a strong advocate for crypto-friendly policies. He has backed the idea of a Strategic Bitcoin Reserve, arguing that the U.S. should hold BTC as a national asset. (Read more)
JUST NOW!
President Trump signs an Executive Order establishing the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile 🇺🇸 pic.twitter.com/N9p2sQknVS
— Margo Martin (@MargoMartin47) March 7, 2025
He has also spoken out against excessive taxation in the industry. Recently, on the All In Podcast, he dismissed a proposal for a 0.01% tax on all crypto transactions, warning that even small taxes can quickly expand into heavy regulatory burdens.
The Bigger Picture in Crypto Regulation
Sacks’ appointment comes at a time when crypto regulation in the U.S. is at a crossroads. The House of Representatives recently voted to overturn the IRS DeFi broker rule, a move that could significantly impact crypto traders and decentralized finance. (Read more)
Meanwhile, concerns over security in crypto trading continue to rise. A recent sandwich attack cost a crypto trader millions, highlighting the risks in decentralized markets. (Read more) Additionally, U.S. traders have lost over $5 billion due to crypto airdrop geoblocking, raising concerns over regulatory overreach. (Read more)
As Sacks takes the lead in shaping U.S. crypto policy, all eyes will be on how his past investments and divestments influence his regulatory decisions. With Trump’s administration already making bold moves in the crypto space, including rumored discussions with Binance on policy collaboration, (Read more) the future of digital assets in the U.S. remains uncertain.
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