Michael Saylor, executive chairman of Strategy, warned that the popular transparency tool known as on-chain proof-of-reserves could backfire, calling it a “bad idea” during an appearance at the Bitcoin 2025 conference in Las Vegas.

Sam Bankman-Fried could leave federal prison more than four years earlier than originally expected. The founder of collapsed crypto exchange FTX is now projected to be released in December 2044, down from his initial 25-year sentence ending in 2049.

Trump Media and Technology Group (DJT), the company behind Truth Social, is reportedly planning to raise $3 billion to buy crypto assets.

Top stories in the Crypto Roundup today:

• Michael Saylor Calls Onchain Proof-of-Reserves a Security Risk for Institutions
• Sam Bankman-Fried's Prison Sentence May Be Cut by Four Years Due to Good Behavior
• Trump Media Reportedly Planning $3B Crypto Investment

Michael Saylor Calls Onchain Proof-of-Reserves a Security Risk for Institutions

Michael Saylor, executive chairman of Strategy, warned that the popular transparency tool known as on-chain proof-of-reserves could backfire, calling it a “bad idea” during an appearance at the Bitcoin 2025 conference in Las Vegas.

Proof-of-reserves are commonly used by crypto exchanges to demonstrate that they hold enough assets to cover customer deposits. The mechanism gained momentum following high-profile collapses such as that of FTX, as a way to reassure users their funds are safe.

But Saylor argued that for institutions, the practice introduces more risk than reassurance. “It actually dilutes the security of the issuer, the custodians, the exchanges and the investors,” he said when asked about it by Blockware Solutions’ head analyst Mitchell Askew.

When pressed on whether Strategy would adopt the practice, Saylor didn’t give a direct answer.

Sam Bankman-Fried's Prison Sentence May Be Cut by Four Years Due to Good Behavior

Sam Bankman-Fried could leave federal prison more than four years earlier than originally expected. The founder of collapsed crypto exchange FTX is now projected to be released in December 2044, down from his initial 25-year sentence ending in 2049.

The revised release date reflects accumulated “Good Conduct Time,” which lets federal inmates earn up to 54 days off their sentence for each year of good behavior. Bankman-Fried has also received credit for time served before his March 2024 sentencing and has taken part in prison programs, though details on those programs weren’t disclosed.

Bankman-Fried is currently serving his sentence at a low-security federal facility in San Pedro, California, after initially being held at Brooklyn’s Metropolitan Detention Center. During his incarceration, he shared a housing unit with music mogul Sean “Diddy” Combs and gave an unexpected interview to media personality Tucker Carlson.

Caroline Ellison, the former CEO of Alameda and a central witness in the case against Bankman-Fried, was sentenced to two years but is now expected to be released in May 2026, also due to sentence reductions.

Trump Media Reportedly Planning $3B Crypto Investment

Trump Media and Technology Group (DJT), the company behind Truth Social, is reportedly planning to raise $3 billion to buy crypto assets.

The capital raise, which could be announced as early as this week at the Bitcoin 2025 conference in Las Vegas, would include a mix of equity and convertible bond offerings.

If finalized, the move would align Trump Media with a growing number of publicly traded firms that have begun holding crypto as a treasury reserve asset. The trend was kicked off by Michael Saylor’s Strategy (formerly MicroStrategy), which has amassed over $62 billion worth of bitcoin by issuing stock and debt to fund purchases.

Trump Media has recently hinted at broader ambitions in the digital asset space. Earlier this year, the company outlined plans to launch a financial services platform targeting cryptocurrencies and tailored exchange-traded funds (ETFs).

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