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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Mar 19, 2025 11:38 UTC
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Crypto Czar Slams $200M ‘Crypto Dump’ Claims, Cites Legal Mandate
David Sacks clarified his $200M crypto sale was a mandatory divestment due to ethical obligations related to his government role, not a market-driven "dump."
Sacks criticized media reports for misrepresenting his sale, arguing they perpetuate negative narratives about crypto.
The incident sparked debate about media portrayal of crypto and the increasing politicization of digital assets, with figures like CZ defending Sacks.
President Trump’s Crypto Czar David Sacks, a key figure in U.S. crypto policy, has spoken out against media reports that claimed he “dumped” his cryptocurrency holdings. In a tweet post, Sacks clarified that his decision to sell was a required divestment, not a sudden sell-off meant to crash the market.
Why Did David Sacks Sell His Crypto?
Sacks explained that his firm, Craft Ventures, sold over $200 million worth of digital assets—including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)—to comply with government ethics rules.
The sale happened before President Trump took office, making it a necessary step rather than a personal choice.
Despite this, some reports suggested he had lost confidence in crypto, even though the market remained stable. Sacks pushed back, saying his decision had nothing to do with market trends and was purely about following the law.
Calling Out Media Misrepresentation
Sacks criticized the media for twisting the story, arguing that such narratives unfairly damage crypto’s reputation. He pointed out that the industry already faces heavy scrutiny despite its growing role in finance. His statement reassured the crypto community that his sale was a legal obligation, not a signal about the market’s future.
Crypto Community Backs Sacks
Many in the crypto space supported Sacks, calling out the media for twisting the story. Binance’s former CEO, Changpeng Zhao (CZ), defended him, saying, “They sell clicks, not ethics.”
David Nage from Arca also weighed in, arguing that the media’s narrative reflects a misunderstanding of cryptos.
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Even Bankless co-owner David Hoffman added another perspective, saying that many people outside of crypto don’t want to believe in its success. He argued that negative headlines cater to those who feel uncomfortable seeing others profit from digital assets.
With crypto becoming more political, the debate over regulations and government involvement will likely continue. But for now, Sacks remains firm his crypto sale wasn’t a reckless move, but a necessary step under government rules.
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