David Sacks Divests $200M in Crypto Holdings Amid Scrutiny

David Sacks, a prominent figure in the crypto world and an advisor to President Donald Trump, has recently divested over $200 million in digital-asset holdings. This move comes amidst growing scrutiny and criticism over his financial ties to the crypto sector and his advocacy for a bitcoin strategic reserve. The decision to liquidate these holdings was made to avoid potential conflicts of interest as Sacks prepares to take on a more significant role in the administration.

The divestment details were revealed in a memo released by the White House, which highlighted the extent of Sacks' financial involvement in the crypto industry. The memo was released just a day before Senator Elizabeth Warren sent a letter demanding clarification on Sacks' crypto ownership. Warren's letter questioned the timing and completeness of Sacks' divestment, particularly in light of his public statements on social media platforms.

Sacks' divestments include a wide range of digital assets and related investments. He sold all his liquid cryptocurrency holdings, including Bitcoin, Ethereum, and Solana, before the start of President Trump’s second term on January 20, 2025. Additionally, he sold his stake in the Bitwise 10 Crypto Index Fund on January 22, 2025. Sacks also divested his shares in publicly traded companies such as Coinbase and Robinhood, as well as shares in private digital asset companies. Furthermore, he sold his limited partner interests in digital asset-focused investment funds like Multicoin Capital and Blockchain Capital. Craft Ventures, Sacks' venture firm, also sold its interest in Multicoin Capital and Bitwise Asset Management, Inc.

The divestments did not stop at cryptocurrencies and related companies. Sacks initiated the sale of his limited partner interests in Sequoia Funds and approximately 90 other venture capital funds. These funds hold positions in thousands of companies, some of which may be linked to the digital asset industry. The total value of the divestments by Sacks and Craft Ventures exceeds $200 million, with at least $85 million directly attributed to Sacks himself. The divestments came at a significant tax cost, as special government employees like Sacks are not entitled to certificates of divestiture.

The move by Sacks to divest his crypto holdings is a significant step in addressing the concerns raised by lawmakers and the public. It underscores the importance of transparency and the need to avoid conflicts of interest in high-level government positions. The divestment also highlights the growing scrutiny that the crypto industry is facing from regulatory bodies and lawmakers, who are increasingly concerned about the potential risks and conflicts of interest associated with digital assets.