What Triggered the Clash Between Sacks and the NYT?
White House AI and crypto adviser David Sacks has pushed back against a New York Times article that claims his government role could benefit his investments and those of people close to him. In a post on X, Sacks said the outlet ignored months of detailed rebuttals and published a story built on weak links. “Today they evidently just threw up their hands and published this nothing burger,” Sacks wrote. “Anyone who reads the story carefully can see that they strung together a bunch of anecdotes that don’t support the headline.” The piece focuses on Sacks’ work as a special government employee — an appointment capped at 130 days — and his past involvement in crypto and AI ventures through his firm, Craft Ventures. Critics, including Senator Elizabeth Warren, have argued since May that his advisory role could influence policies affecting assets he once held or still holds.
Investor Takeaway
What Investments Did Sacks Keep — and What Did He Sell?
Before joining the White House, Sacks and Craft Ventures sold more than $200 million in crypto and crypto-linked stocks. At least $85 million of that belonged to Sacks, according to the report. However, he kept stakes in illiquid private holdings tied to digital-asset companies. The Times says its review of his disclosure shows he still has 708 tech investments, including 449 tied to AI and 20 tied to crypto. The paper listed these as examples of possible conflicts, since policy decisions in either sector could lift the value of related companies. One example involved BitGo, the crypto infrastructure firm that filed to go public in September. Documents show Craft Ventures owns 7.8% of the company. The Times noted that Sacks supported the GENIUS Act — a stablecoin bill that became law earlier this year — which many in the industry expect to widen institutional stablecoin use. The article also pointed to AI-related investments that have surged as the government and markets expand spending on the sector. Ethics waivers released in March said Sacks would sell certain AI and crypto holdings but did not include a timeline or valuation details.
How Did Sacks Respond to the Conflict Claims?
Sacks posted a letter his lawyers at Clare Locke sent to the Times, accusing the publication of pushing a predetermined narrative. The letter said reporters set out “to write a hit piece” and were given “clear marching orders” to find conflicts. Sacks wrote on X that it was “very clear how NYT willfully mischaracterized or ignored the facts to support their bogus narrative.” His spokesperson, Jessica Hoffman, told the publication that Sacks has followed the rules that apply to special government employees. She said the Office of Government Ethics instructed Sacks to sell some investments but not others, and that he complied. The Times also raised questions about whether Sacks exceeded the 130-day limit for his government role. According to the report, Democratic lawmakers flagged the issue in September. But Sacks reportedly keeps detailed records of his advisory days to stay under the cap.
Investor Takeaway
Where Does This Leave the White House’s Crypto and AI Work?
Sacks’ appointment put a prominent tech investor at the center of U.S. crypto and AI policy discussions, and the Times report reflects growing tension around who shapes those rules. The White House has leaned on industry specialists in several areas, raising questions about divestment timelines and the boundaries of advisory power. With both fields drawing intense regulatory attention, the debate over Sacks’ holdings is likely to continue. His government role is temporary, but the policies developed during that period could have long-term effects on digital-asset markets, stablecoin infrastructure and AI startups.