David Sacks, Trump's Crypto Czar, Denies NYT Claims of Conflicts of Interest

White House AI and cryptocurrency advisor David Sacks has forcefully countered a New York Times investigation that raises questions about potential conflicts of interest between his policymaking role under the Trump administration and his private investments.

Key Takeaways

David Sacks, the White House's AI and crypto czar, disputes claims made by a New York Times investigation regarding conflicts of interest stemming from his investments.
Sacks criticized the narrative as a “hoax” and claimed the Times ignored evidence that disproved its allegations.
The NYT report emphasized Sacks's influence in shaping technology policy while raising concerns about perceived conflicts due to his extensive tech investments.

In a post on X, Sacks alleged that the Times was driven by a preordained narrative and disregarded months of evidence he asserted disproved their allegations.

Sacks Dismisses NYT Claims of Conflict, Calls Story “False” and “Misleading”

The New York Times published its article on Sunday, detailing how Sacks’s extensive portfolio in technology and cryptocurrency may benefit from the policy decisions he influences as a special government employee.

The article noted Sacks’s participation in shaping the administration’s artificial intelligence strategy, his interactions with Silicon Valley leaders, and his longstanding connections with prominent tech entrepreneurs.

In response, Sacks described the article as the culmination of a five-month effort to fabricate a "hoax." His post, titled “INSIDE NYT’S HOAX FACTORY,” claimed that reporters repeatedly altered their accusations following the presentation of evidence that challenged their initial claims.

“Today they evidently just threw up their hands and published this nothing burger,” Sacks stated.

Sacks asserted that the Times made false allegations, including a “fabricated dinner” with a key tech executive, supposed promises of access to the president, and claims that he exerted influence over defense contracts.

He argued that these claims were meticulously debunked, yet the investigation continued. He also criticized the newspaper for presenting only selective excerpts from the responses he and his team had provided over time.

Sacks lamented that the Times ignored crucial information that contradicted its narrative. “At no point… was NYT willing to update the premise of their story to accept that I have no conflicts of interest to uncover,” he wrote.

Ultimately, Sacks sought the assistance of the law firm Clare Locke, recognized for its defamation cases, after determining that the Times was not engaged in a fair process.

He included the firm’s letter to the newspaper, asserting that the document provided “full context” for the exchanges.

NYT Highlights Sacks’s Growing Influence in the Trump Administration's Technology Agenda

Sacks is well-known as a co-founder and partner at Craft Ventures, a firm that boasts hundreds of investments in technology, cryptocurrency, and artificial intelligence.

His unpaid role in the government, classified as a “special government employee,” has faced scrutiny since early this year.

In May, Senator Elizabeth Warren raised concerns that Sacks was “financially invested in the crypto industry,” suggesting that this could enable him to gain from policy modifications made at the White House.

While the Times report characterized Sacks as one of the most influential tech figures in the Trump administration, it also brought to light worries expressed by certain officials regarding an AI summit that Sacks helped organize in July.

The event was initially anticipated to be hosted by the “All-In” podcast, where Sacks is a co-anchor.

According to the Times, some White House personnel were concerned that the sponsorship deals linked to the podcast could create a perception of selling access. This arrangement was modified later, as reported.

The Times also delved into Sacks’s extensive investment portfolio, which includes his long-standing relationships in Silicon Valley, where he has invested alongside influential figures like Elon Musk and Peter Thiel for over two decades.

His ethics waivers, issued in March, indicated that he had either sold or begun selling many of his cryptocurrency and AI assets.

The waivers stated that his remaining holdings were “not so substantial” as to affect his government duties. However, the Times pointed out that the filings lack specifics regarding when those divestments occurred.

Importantly, Sacks’s spokesperson stated that the notion of conflicts of interest was “false,” asserting that his government role has cost him financially rather than provided any benefit.