‘Nothing burger’ – David Sacks blasts NYT’s ‘conflict of interest’ report

David Sacks, the U.S. AI and crypto czar, has distanced himself from a recent New York Times (NYT) report alleging widespread conflicts of interest.  

The report claimed that Sacks leveraged his influential White House role to push policy directions that benefited himself and his tech and crypto cronies.

However, Sacks denied the allegations and slammed the report as a ‘bungled mess,’ a “nothing burger,” and sued the publisher for defamation. 

Source: X

Sacks’ crypto portfolio under scrutiny

The report stated that Sacks retained 20 crypto investments, contradicting the previous statement by the White House that he had sold over $200 million in crypto positions to minimize conflict of interest. 

“What is clear is that Mr. Sacks, directly or through Craft, has retained 20 crypto and 449 A.I.-related investments, according to The Times analysis.”

In particular, the NYT alleged that Sacks pushed the stablecoin bill, the GENIUS Act, to advance his interest in BitGo. It added, 

“In September, BitGo filed for an initial public offering. Craft owns 7.8 percent of the company, according to financial filings, which would be worth more than $130 million at BitGo’s 2023 valuation.”

BitGo is a custody and a ‘stablecoin-as-a-service’ provider that built the infrastructure behind USD1, the stablecoin issued by Trump-backed World Liberty Financial (WLFI).

However, the firm denied any benefit from the passage of the GENIUS Act.

Sacks’ crypto policy push

Sacks began Craft Ventures in 2017, targeting tech start-ups.

However, he reportedly divested some of his investments in Bitcoin, Solana, and others to minimize a conflict of interest, according to a White House statement earlier in the year. 

As a top policy figure shaping the White House’s role in crypto, Sacks secured some notable wins, including the passage of the stablecoin law and pushing back against some crypto-related debanking. 

Still, the strategic BTC reserve and market structure bill has not yet crossed the finishing line. 

As such, top crypto leaders threw their support behind him, led by Tether CEO Paolo Ardoino. The world’s largest stablecoin issuer chief said Sacks has done a good job in supporting U.S. crypto and added, 

“The current attack against him is truly meritless. As always, ask yourself who benefits from this. Btw the group attacking him is the same attacking Elon (and Tether).”

Perianne Boring, a partner at Off the Chain Capital, echoed a similar stance, calling it a coordinated attack on crypto. 

Source: X

Final Thoughts

• Sacks has denied any conflict of interest, and the NYT claims that he pushed crypto policies to benefit his firm, Craft Ventures. 
• The crypto industry, led by Tether CEO, defended Sacks and condemned the report as a coordinated attack against the sector.