White House AI and crypto czar David Sacks has vehemently denied a New York Times report alleging conflicts of interest between his government advisory role and his extensive investments in cryptocurrency and artificial intelligence companies. In a post on X, Sacks labeled the article a 'nothing burger' and accused the outlet of stringing together 'a bunch of anecdotes that don't support the headline.'
The NYT investigation, published on Sunday, revealed that Sacks retains 708 technology investments, including 20 crypto-related holdings and 449 AI companies, through his venture firm Craft Ventures. Despite ethics waivers requiring divestment, the report highlighted that Sacks still holds interests in private equity of digital asset-related companies, with specifics on timing and value undisclosed.
One key example cited involves Craft Ventures' 7.8% stake in BitGo, a crypto infrastructure company offering stablecoin-as-a-service, which filed to go public in September. The Times noted Sacks' backing of the GENIUS Act, a stablecoin-regulating law signed earlier this year, which critics argue could benefit his investments. Senator Elizabeth Warren had previously condemned the arrangement, stating in May that Sacks is 'financially invested in the crypto industry, positioning him to potentially profit from the crypto policy changes he makes at the White House.'
Sacks' spokesperson, Jessica Hoffman, asserted that he has complied with all ethics rules for special government employees, and the Office of Government Ethics approved his divestment plan. However, the report raised questions about his involvement in White House AI events and relationships with companies like Nvidia. Sacks' lawyers at Clare Locke accused the NYT of planning a 'hit piece', while Sacks maintains that his role, limited to 130 days, is managed to stay under the cap.
