Sacks Condemns NYT Conflict of Interest Report as 'Willful Misunderstanding' of White House Role

Source: DefiPlanet Original Title: Sacks Condemns NYT Conflict of Interest Report as ‘Willful Misunderstanding’ of White House Role Original Link:

Quick Breakdown

• White House AI and Crypto Czar David Sacks denounced a New York Times report regarding his financial ties as a “willful misunderstanding” of his government role.
• Sacks’ team defended his unpaid Special Government Employee status, arguing he divested millions in assets, costing him personally.
• The NYT report implied conflicts of interest, suggesting Sacks’ advocacy for looser AI regulation could financially benefit chipmakers.

Sacks refutes claims on divestments and policy influence

Silicon Valley investor David Sacks, the White House’s designated AI and Crypto Czar, publicly criticized a major New York Times investigative report published on Sunday, November 30, 2025, which scrutinized his financial ties and influence within the administration. Sacks condemned the article as a “willful misunderstanding” of his status as an unpaid Special Government Employee (SGE), a designation intended by Congress to permit experts to maintain specific private business interests while serving for limited periods.

INSIDE NYT’S HOAX FACTORY

Five months ago, five New York Times reporters were dispatched to create a story about my supposed conflicts of interest working as the White House AI & Crypto Czar.

Through a series of “fact checks” they revealed their accusations, which we debunked…

— David Sacks

The NYT report suggested that Sacks’ policy advocacy for lighter AI regulations and his extensive network of over 700 tech investments, nearly two-thirds of which are tied to AI, create unavoidable conflicts of interest. The report implied that Sacks’s policies, such as pushing for looser AI chip export restrictions, could result in up to $200 billion in global sales for major chipmakers like Nvidia, companies he is linked to.

In response, Sacks’s legal team asserted that the tech mogul had already taken “significant steps” by initiating or completing the divestment of over 99% of his holdings that could have potentially raised a conflict concern. Sacks had previously divested hundreds of millions of dollars in cryptocurrency before taking office, stating he did not want “even have the appearance of a conflict”. His legal counsel rejected the NYT’s claims, arguing that Sacks’s divestments ultimately cost him on his personal balance sheet. The White House backed Sacks, stating he had addressed all potential conflicts and that his private-sector insights are an “invaluable asset” to the President’s agenda.

Notably, David Sacks had argued that the primary threat from AI is “Orwellian AI” used by governments for surveillance and manipulation, not a mechanical uprising. He opposes “heavy-handed” consumer protection laws, believing they stifle innovation and risk ideological bias, and suggests existing laws suffice to address misuse. However, Sacks contrasts his pro-freedom AI stance with his call for apparent regulatory certainty in the crypto market to ensure stability.