Key takeout
David accused allegations of financial misconduct as slander and defamation. Sack sold over $200 million Crypto Holdings before his consulting role.
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David Sachs has defended himself against recent allegations that he uses his position to manipulate the crypto market, calling it an unfounded claim.
In a new episode of the All-in-Podcast, White House AI and Crypto Czar addressed accusations that he was engaged in a plan to inflate his crypto holdings for personal gain.
“People came out right away and somehow I was working on a plan to pump my bags and basically create outlet fluidity for myself,” Sachs said.
Sachs reiterated that he sold all his crypto holdings before joining the administration to avoid the emergence of conflicts of interest. He confirmed in his previous statement that he sold Bitcoin, Ethereum and Solana.
“When it comes to crypto, there’s a fluctuation in the market,” he explained. “Someone pointed out one of those variations and made it impossible to say in any way that the code is benefiting from it, and that’s exactly what happened.”
Sacks has revealed that he and his venture company Kraft have settled about $200 million in crypto assets.
“I made it clear that I paid the taxes before the first day and said there would be basically no disputes,” he said, adding that scrutiny had changed. People claimed that even if he didn’t own the code, he was still invested in the Crypto Fund.
Sacks has revealed that it has withdrawn from multiple crypto-centric investment funds, including positions in Bitwise, Multicoin Capital and Blockchain Capital.
“At this point, I think they basically gave up on this story,” Sachs said.
According to Calacanis, who manages one of the funds sold, the process requires the fund to be sold at a “50%, 25% OFF” discount, potentially resulting in eight or nine digit losses on the sack.
Trump’s Cryptocrat also dismissed the notion that he sought economic benefits through his role. He made it clear that he is in the role of an unpaid consultant in the administration.
Sachs criticized the assumption that wealthy individuals enter the government for financial gain and call it “lazy and stupid.”
“It’s a lazy and stupid story to say that the reason why people who are already successful in business are entering the government is somehow making more money. I’ve made money before,” he said. “This includes a significant disruption in my business profits.”
Sack reiterated that he was required to sell to avoid ethical concerns, even if it meant a major economic loss.
“In a sale you have to pay taxes or get a substantial discount. That costs you money,” he said. “So it’s a lazy story that people create. But there’s no truth to it.”
Sachs faces scrutiny of public opinion over allegations of potential conflicts of interest tied to Trump’s crypto and his role as Ai Zar.
Critics, including Sen. Elizabeth Warren, raised concerns that Sack could influence Trump’s altcoin picks in US crypto sanctuaries and could benefit financially from picks like Bitcoin, Ethereum, Solana, Cardano and XRP.
The president ultimately signed an executive order to use legal forfeiture to create strategic Bitcoin reserves and US digital asset stockpiles.
In an interview with Bloomberg TV on Friday, Sachs revealed that Trump previously mentioned XRP, SOL and ADA.
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