David Sacks, the White House’s newly appointed ‘Crypto Czar,’ has criticized media reports on his decision to sell off his cryptocurrency holdings before assuming his role in the Trump administration.
Sacks took to X to dispute media narratives surrounding his crypto transactions, asserting that his actions were dictated by ethics regulations rather than a discretionary sell-off. “I did not ‘dump’ my cryptocurrency; I divested it,” he stated, emphasizing that the decision required government service. He also expressed his commitment to his role, calling it an honor to serve in the administration.
Sacks’ remarks came after media coverage framed his divestment as a sudden sell-off rather than a compliance measure. Before taking office, he confirmed that he sold all his cryptocurrency holdings, including Bitcoin, Ethereum, and Solana.
The U.S. Office of Government Ethics requires officials with personal cryptocurrency investments to liquidate their holdings before working on related policy matters. Sacks, categorized as a “special government employee,” is technically exempt from this rule. However, he proceeded with the divestment, citing compliance with ethical standards.
Sacks also disclosed that he had sold his investments in a Bitwise exchange-traded fund (ETF) on January 22, rejecting claims that he retained indirect exposure to crypto assets. “I do not have ‘large indirect holdings,” he wrote on X.
As the head of the White House’s crypto policy efforts, Sacks chaired the White House Crypto Summit, where he met with digital asset executives to discuss regulatory frameworks and the possibility of establishing a national crypto reserve.
Scrutiny and Political Ties
Despite his divestment, Sacks has faced scrutiny from consumer advocacy groups concerned about conflicts of interest. Public Citizen, a Washington-based nonprofit, has questioned his connections to the digital asset industry, pointing to his previous role as co-founder of the venture capital firm Craft Ventures.
The firm has invested in multiple crypto startups, though Sacks himself no longer holds direct exposure to digital assets.
His appointment also comes amid growing controversy over President Donald Trump’s own involvement with cryptocurrencies. Trump’s recent launch of a memecoin has raised ethical concerns, with Public Citizen calling for an investigation into whether the move constitutes a conflict of interest.
“A president soliciting money from the general public for his personal enrichment would be a reprehensible abuse of the presidency,” said Bartlett Naylor, the group’s financial services advocate.
Sacks, a longtime supporter of Trump, played a key role in the president’s fundraising efforts. Alongside venture capitalist Chamath Palihapitiya, Sacks hosted a major fundraiser that secured $12 million for Trump’s re-election campaign last year.
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