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Strategy Inc. (NASDAQ:MSTR) co-founder Michael Saylor on Tuesday sharply criticized the practice of publishing proof of reserves, calling it a security liability and a distraction from what truly matters, audited financials and institutional-grade transparency.

What Happened: His comments, made in a public address, dismissed proof of reserves as a "crypto parlor trick" that offers no real protection and exposes companies to significant risk.

"It's like publishing the addresses and bank accounts of all your kids," said Saylor. "It doesn't make your family safer."

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He warned that making wallet addresses public opens an attack surface for hackers, nation-state actors, and other malicious entities. "You publish your wallet, that's an attack vector," he added.

Saylor's central critique is that most current proof-of-reserve disclosures are incomplete and misleading.

"It's a proof of assets that is insecure and not a proof of liabilities," he said. "If you've incurred $50 billion in liabilities via fiat contracts, the security's no good."

He argued that the only acceptable standard for true financial attestation is the U.S. public company model: "a public company with a Big Four auditor, subject to Sarbanes-Oxley, where the CFO, CEO, and board are civilly and criminally liable."

According to Saylor, this institutional accountability far outweighs wallet-based proof systems in the eyes of serious investors.

See Also: Grow your IRA or 401(k) with Crypto – unlock  the power of alternative investments including a Crypto IRA within your retirement account.

Why It Matters: While his critique resonated with some, it didn't land quietly.

Binance founder Changpeng Zhao (CZ) apparently responded on social media with a mocking jab, "He probably sold bitcoins. 😂"

CZ's tweet quickly went viral, pointing out the divide between corporate-style governance advocated by figures like Saylor and the transparency-first ethos favored by many in the crypto-native world.

Saylor did leave room for future innovation, suggesting that a zero-knowledge proof-based system might eventually offer a secure compromise — but only if cleared by auditors, risk managers, custodians, and legal counsel.