{"id":9765,"date":"2025-03-15T07:58:36","date_gmt":"2025-03-15T06:58:36","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=9765"},"modified":"2025-03-15T07:58:36","modified_gmt":"2025-03-15T06:58:36","slug":"sacks-and-his-venture-capital-firm-offload-200m-in-crypto-and-stocks-ahead-of-white-house-position","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/15\/sacks-and-his-venture-capital-firm-offload-200m-in-crypto-and-stocks-ahead-of-white-house-position\/","title":{"rendered":"Sacks and His Venture Capital Firm Offload $200M in Crypto and Stocks Ahead of White House Position"},"content":{"rendered":"

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David Sacks along with his venture capital firm liquidated more than $200 million in cryptocurrency and associated stocks prior to initiating his position as the White House AI and cryptocurrency czar, as revealed in a White House memorandum.<\/p>\n

\u201cYou and Craft Ventures have offloaded over $200 million of assets connected to the digital currency sector, of which $85 million is directly linked to you,\u201d stated<\/a> the memorandum dated March 5.<\/p>\n

Crypto liquidation to avert conflict of interest<\/h2>\n

The memorandum indicated that \u201csubstantial measures\u201d were undertaken to mitigate possible conflicts of interest before Sacks embarked on his role as the White House AI and cryptocurrency czar<\/a> \u2014 a significant aspect of which involves assisting in the establishment of a regulatory framework for the crypto sector.<\/p>\n

Sacks relinquished all the \u201cliquid cryptocurrency\u201d from his holdings, along with Craft Ventures’ assets \u2014 the investment firm he co-founded in 2017 \u2014 which included investments in Bitcoin (BTC<\/a>), Ether (ETH<\/a>), and Solana (SOL<\/a>) ahead of US President Donald Trump\u2019s inauguration on Jan. 20.<\/a><\/p>\n

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The memorandum detailed which cryptocurrencies and crypto stocks David Sacks liquidated prior to Trump\u2019s inauguration. Source: <\/em>The White House<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Following Trump\u2019s inauguration, the cryptocurrency market experienced a significant downturn amid a wider market decline, with many attributing the blame to Trump\u2019s proposed tariffs and uncertainty regarding US interest rates.<\/p>\n

While Bitcoin reached a new all-time peak of $109,000 just hours before Trump took the oath as the 47th US president, it recently fell below $80,000 on Feb. 27<\/a>, eliminating all gains from after the election. As of the publication date, Bitcoin trades at $84,155, according to CoinMarketCap data<\/a>.<\/p>\n

Sacks also divested interests in publicly traded companies related to cryptocurrencies, including Coinbase (COIN), Robinhood (HOOD), and stakes in private digital asset firms.<\/p>\n

Moreover, he sold his limited partner stake in Solana-centric Multichain Capital and the cryptocurrency-focused venture capital firm Blockchain Capital. Concurrently, Craft Ventures disposed of its shares in Multichain Capital and Bitwise Asset Management.<\/p>\n

Sen. Warren pressured Sacks to demonstrate he no longer possesses crypto<\/h2>\n

The memorandum is dated one day before Massachusetts Senator Elizabeth Warren<\/a> requested Sacks in a March 6 letter to confirm that he no longer holds any digital assets after his statement in an X post indicating he had sold all his cryptocurrency.<\/p>\n

\u201cIn spite of your public declarations via X, it remains ambiguous exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures withdrew from Bitwise, and whether individuals in your circle \u2018may have retained positions and sold during the recent price surge,\u201d Warren stated.<\/p>\n

Since Sacks took on the White House cryptocurrency role, he has been a vocal proponent on various matters concerning the crypto industry, addressing topics such as the necessity of a Strategic Bitcoin Reserve<\/a> and avoiding excessive taxation of the crypto sector.<\/p>\n

Related: <\/strong><\/em>Bitcoin panic selling costs new investors $100M in 6 weeks \u2014 Research<\/strong><\/em><\/a><\/p>\n

Sacks has recently dismissed the concept of taxes on cryptocurrency transactions<\/a> during an episode of the All In Podcast, after host Jason Calacanis suggested instituting a 0.01% tax on every crypto transaction.<\/p>\n

\u201cThat\u2019s typically how taxes originate. They are presented as being quite small,\u201d Sacks remarked.<\/p>\n

\u201cYou know, when the income tax was first enacted, it was only applicable to about a thousand Americans, and the legislators assured everyone that it would never affect the middle class,\u201d Sacks further elaborated.<\/p>\n

Magazine: <\/strong><\/em>Crypto enthusiasts are fascinated with longevity and biohacking: Here\u2019s why<\/strong><\/em><\/a><\/p>\n