David Sacks, Trump’s AI and Crypto Czar, Slams NYT for Sensationalism in 2024

• The Clash Between David Sacks and The New York Times
• What’s at Stake in the Conflict-of-Interest Allegations?
• How Sacks Is Fighting Back Against the NYT
• The Broader Implications for Tech Journalism
• What This Means for Crypto and AI Policy
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David Sacks, appointed by former President Trump as a key advisor on AI and cryptocurrency, has publicly criticized The New York Times for what he calls sensationalist reporting. The feud centers around allegations of conflicts of interest, with Sacks claiming the NYT ignored factual rebuttals. The controversy highlights broader debates about media bias and the ethics of financial reporting in the tech and crypto sectors.

The Clash Between David Sacks and The New York Times

David Sacks, a Silicon Valley entrepreneur and Trump’s designated advisor on AI and cryptocurrency, has taken to social media platform X to lambast The New York Times for its coverage of his alleged conflicts of interest. Sacks argues that despite providing detailed rebuttals over the past five months, the NYT continues to push what he describes as a "false narrative." The dispute stems from an NYT article suggesting Sacks could financially benefit from policies he influences in his government role.

What’s at Stake in the Conflict-of-Interest Allegations?

The NYT’s reporting focuses on Sacks’ retained investments in 708 technology companies, including 449 AI-related and 20 crypto-linked ventures, through his venture capital firm Craft Ventures. While Sacks received ethics waivers in March requiring him to divest certain holdings, the NYT notes the waivers don’t specify timing or current valuation of remaining investments. "They’ve moved from one baseless claim to another," Sacks wrote, "ignoring every factual correction we’ve provided."

How Sacks Is Fighting Back Against the NYT

Sacks has retained Clare Locke, a law firm specializing in defamation cases, and publicly shared their legal correspondence with the NYT. He accuses the publication of having "clear marching orders" to find conflicts where none exist. "Anyone reading our documentation can see how they’ve twisted or omitted facts," Sacks stated. His spokesperson Jessica Hoffman maintains that Sacks has complied with all government ethics requirements, including divesting over $200 million in crypto-related assets before taking office.

The Broader Implications for Tech Journalism

The spat has reignited debates about media credibility in tech reporting. Coinbase CEO Brian Armstrong weighed in, calling the NYT "a political propaganda machine selling anger to unhealthy people rather than practicing real journalism." Meanwhile, industry observers note this isn’t the first time Sacks has clashed with media – Senator Elizabeth Warren raised similar concerns about crypto conflicts back in May. The controversy underscores the challenges of covering the intersection of technology, finance, and politics.

What This Means for Crypto and AI Policy

As Trump’s point person on two of tech’s hottest sectors, Sacks’ influence on policy remains significant regardless of media scrutiny. The NYT article suggests his retained investments could shape regulatory decisions, while Sacks counters that he’s fully compliant with ethics rules. With AI and crypto regulation at a critical juncture, the outcome of this media battle could impact public perception of policy decisions coming from the administration.

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What prompted David Sacks’ criticism of The New York Times?

Sacks objected to an NYT article suggesting he maintains conflicts of interest through his tech investments while advising the government on AI and crypto policy. He claims the publication ignored his detailed rebuttals of similar allegations over five months.

How has Sacks responded legally to the NYT’s reporting?

He retained Clare Locke LLP, a defamation law firm, and made their legal correspondence with the NYT public to demonstrate what he calls the paper’s "deliberate misrepresentation" of facts.

What specific investments are at the center of the controversy?

Financial disclosures show Sacks retains 708 tech investments, including 449 AI-related and 20 crypto-linked holdings, though he divested over $200 million in crypto assets before taking his government role.

How have others in the tech industry reacted?

Coinbase CEO Brian Armstrong strongly supported Sacks, criticizing the NYT’s approach to tech coverage, while some politicians like Elizabeth Warren have echoed concerns about potential conflicts.