Tech Entrepreneur David Sacks Unloads $200M in Cryptocurrencies Ahead of New White House Role

White House Crypto Asset Manager Sacked Amid Divestment Controversy

The White House has parted ways with its crypto asset manager, amid allegations of improper divestment practices. The move comes after a report surfaced suggesting that the manager, tasked with overseeing the administration's digital assets, had been secretly selling off a significant portion of the portfolio without proper authorization.

According to sources, the White House had hired the manager, a well-known figure in the cryptocurrency space, in 2020 to oversee a $100 million investment in digital assets. The goal was to diversify the administration's portfolio and capitalize on the growing popularity of cryptocurrencies.

However, a recent investigation by a prominent financial news outlet revealed that the manager had been quietly liquidating a substantial portion of the portfolio, allegedly without the knowledge or approval of White House officials. The report claimed that the divestment was motivated by a desire to cash in on the recent market downturn, rather than a genuine attempt to diversify the portfolio.

The White House has since confirmed the manager's departure, stating that an internal investigation had uncovered "serious concerns" regarding the manager's actions. In a statement, the administration emphasized its commitment to transparency and accountability, adding that it would be conducting a thorough review of its digital asset management practices.

The controversy has sparked widespread speculation about the administration's future plans for its digital asset portfolio, as well as the broader implications for the cryptocurrency market. Critics have long argued that government investment in digital assets is a recipe for disaster, citing concerns about market volatility and the potential for conflicts of interest.

The White House has yet to comment on the future of its digital asset portfolio, but insiders suggest that the administration is likely to re-evaluate its investment strategy and consider more transparent and accountable approaches. The controversy has also raised questions about the role of government in the cryptocurrency market, with some arguing that it is inherently at odds with the decentralized and anonymous nature of blockchain technology.