Warren, Kim Press Key Commerce Department Official on Continuing Financial Conflicts of Interest and Failure to Divest

Warren, Kim Press Key Commerce Department Official on Continuing Financial Conflicts of Interest and Failure to Divest

"The American public deserves public servants who look out for the common good, not ones who aspire to line their pockets with crypto investment money or refuse to resolve conflicts of interest."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee and U.S. Senator Andy Kim (D-NJ), Ranking Member of the Subcommittee on National Security and International Trade and Finance, sent a letter to David L. Fogel, Assistant Secretary of Commerce for International Trade, raising concerns about his ongoing financial ties to a crypto investment fund and his failure to timely divest from the fund as required under his ethics agreement.

In their letter, the Senators highlighted a recent amendment to Assistant Secretary Fogel's ethics agreement allowing him to retain his financial interest in Nova Digital Opportunities Fund, L.P. (Nova) beyond the original deadline for divestment, even though he is in a position to make official government decisions that could affect companies like Nova and he could profit from his stake in the fund.

"Your continued involvement and investment in Nova presents a conflict of interest for you in your recently confirmed role as Assistant Secretary and Director General of the U.S. and Foreign Commercial Service Global Markets at the U.S. Department of Commerce. I am therefore requesting information regarding your investment, your plans for divestment, and your efforts to mitigate any conflicts of interest in the interim," wrote the Senators. "Nova manages liquid token investments under Brevan Howard, a global crypto and digital investment management firm. As a public servant, you hold a position that influences 'foreign direct investment' promotion efforts that may affect companies like Nova."

They continued: "Despite still having several more weeks to fully divest, you instead sought a waiver on January 12, 2026, from the Office of Government Ethics to extend your divestment from Nova from February 4, 2026 until April 1, 2026. Your failure to meet your original divestment obligation also coincides with reports about a rare opportunity for Nova's equity holders to recoup their investment in Berachain . . . ."

Berachain is a blockchain project valued at $1.5 billion, which includes a rare refund clause allowing investors to recoup their principal without risk until February 6, 2026 - squarely within the newly approved divestment window. If exercised, the refund clause could allow Nova and its equity holders, including Assistant Secretary Fogel, to profit significantly.

"Should Nova exercise the refund clause, you and other Nova equity holders stand to profit significantly from the company's interest in Berachain. The American public deserves public servants who look out for the common good, not ones who aspire to line their pockets with crypto investment money or refuse to resolve conflicts of interest," the lawmakers concluded.

The Senators requested detailed information regarding Assistant Secretary Fogel's investment, the identity and policies of Nova's fund administrators, the justification for delaying divestment, and whether he has properly recused himself from any matters affecting Nova or similar digital asset hedge funds. They requested written responses no later than February 4, 2026.

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