How David Sacks Cashed Out $200M Before Becoming Crypto Czar 🤯

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David Sacks, the man of the hour, and his venture capital firm, Craft Ventures, managed to unload a staggering $200 million in crypto and crypto-related stocks just before he stepped into his shiny new role as the White House AI and crypto czar. A memorandum from the White House, dated March 5, spilled the beans on this financial maneuver.

“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 memorandum stated, with the kind of bureaucratic dryness that only a government document can achieve.

A Crypto Sell-Off to Avoid the Appearance of Shenanigans

The memorandum explained that these “significant steps” were taken to avoid any potential conflicts of interest as Sacks prepared to take on his new role. His job? To help create a legal framework for the crypto industry. Because, of course, nothing says “trustworthy” like a guy who just cashed out $200 million in crypto.

Sacks didn’t just dip his toes out of the crypto pool—he cannonballed out. He offloaded all the “liquid cryptocurrency” in his personal portfolio, as well as Craft Ventures’ holdings, which included Bitcoin (BTC), Ether (ETH), and Solana (SOL). This all happened before President Donald Trump’s inauguration on January 20, because timing is everything, folks.

But wait, there’s more! Sacks also divested from publicly traded crypto-related firms like Coinbase (COIN) and Robinhood (HOOD), as well as stakes in private digital asset companies. He even sold his limited partner interest in Solana-focused Multichain Capital and crypto-focused venture capital firm Blockchain Capital. Craft Ventures, not to be outdone, also offloaded its holdings in Multichain Capital and Bitwise Asset Management. Talk about a clean break.

Senator Warren Wants Proof, Because Trust Is Hard to Come By

The memorandum was dated one day before Massachusetts Senator Elizabeth Warren sent a letter to Sacks on March 6, urging him to prove he no longer holds any digital assets. This came after Sacks claimed in an X post that he had sold off all his crypto. Because, you know, a tweet is totally legally binding.

“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge,” Warren wrote, with the kind of skepticism that only a seasoned politician can muster.

Since taking on the role, Sacks has been a vocal advocate for various issues in the crypto industry, from the importance of a Strategic Bitcoin Reserve to not over-taxing the crypto industry. Because nothing says “public servant” like advocating for lower taxes on your former investments.

On a recent episode of the All In Podcast, Sacks shut down the idea of crypto transaction taxes after host Jason Calacanis proposed charging a 0.01% tax on every cryptocurrency transaction. “That’s always how taxes start. They are described as being very modest,” Sacks said, with the wisdom of a man who has seen it all.

“You know, when the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people,” Sacks added, because history has a funny way of repeating itself. 🎭

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2025-03-15 04:28