David Sacks Critiques New York Times Article
David Sacks, the White House’s advisor on AI and cryptocurrency, has strongly criticized a recent New York Times article that suggested his governmental position might yield financial benefits for him and his associates. In a response posted on X, Sacks expressed his frustration, claiming that the publication has disregarded his detailed rebuttals over the past five months.
“They just threw up their hands and published this nothing burger,”
he remarked, urging readers to scrutinize the article closely to see that it merely compiled various anecdotes rather than presenting a coherent argument supporting its claims.
Financial Scrutiny and Investments
Sacks, who is a co-founder of Craft Ventures, has faced scrutiny regarding his financial interests since taking on the role of a special government employee. Notably, Democratic Senator Elizabeth Warren previously stated that his investments in the crypto sector could lead to potential profits from policy decisions he helps to implement at the White House. Prior to his government service, Sacks and Craft Ventures sold off over $200 million in crypto-related investments, yet he still holds interests in multiple illiquid assets linked to digital currencies. Surprisingly, reports indicate that Sacks still maintains 20 cryptocurrency investments.
Investments and Potential Conflicts
The New York Times conducted a detailed examination of Sacks’ financial disclosures, noting that he retains 708 tech investments, including 449 in artificial intelligence and 20 in cryptocurrency. These holdings may stand to benefit from the policies he endorses in his advisory capacity. The article highlighted a possible conflict tied to Craft Ventures’ investment in BitGo, a crypto infrastructure firm, which filed for public trading in September and where Craft Ventures held a 7.8% stake. Furthermore, Sacks advocated for the GENIUS Act, legislation aimed at regulating stablecoins, which many in the crypto industry believe could enhance institutional adoption of these digital tokens.
Ethics and Compliance
Additionally, the financial ties to AI companies were also mentioned, particularly as Sacks and Craft Ventures have interests in firms that have soared in valuation amid significant interest from both governmental entities and financial markets. Although Sacks had received ethics waivers stating he would sell his AI and crypto investments, ambiguities remain regarding when these assets were disposed of and the value of what he has left.
In his comments on X, Sacks shared a letter from his attorneys accusing The New York Times of intent to produce a negative article and instructing their reporters to search for evidence of conflicts of interest. He passionately defended his position by stating,
“It’s clear how NYT willfully mischaracterized or ignored the facts to support their bogus narrative.”
Moreover, a spokesperson for Sacks confirmed to the Times that he has adhered to the regulations applicable to special government employees. The Office of Government Ethics has stipulated that while Sacks is advised to divest from certain investments, he is not required to do so for others. As a special government employee, Sacks is permitted to serve only 130 days, and there have been inquiries from Democratic legislators regarding whether he may have exceeded that limit. Despite this, reports indicate that Sacks is diligent in his management of the days he works in this capacity to remain compliant with the established regulations.
