Genius Group Forced to Sell Bitcoin Due to Court Order
Genius Group, an AI education firm, must sell its Bitcoin after a U.S. court blocked it from selling shares or raising funds. The U.S.district Court for the Southern District of New York issued this order on March 13. The company had to reduce its Bitcoin holdings from 440 to 430 BTC to fund operations.
This legal issue stems from Genius Group’s attempt to terminate an Asset Purchase Agreement with Fatbrain AI. The company initiated arbitration in October 2024 to exit the deal. By December, both parties agreed to a preliminary injunction. Fatbrain AI shareholders then filed lawsuits against Genius Group adn its executives, alleging fraud.
The SEC also accused Fatbrain AI of shareholder fraud. In response, the executives sought a restraining order against Genius Group, which the court granted on February 14. Genius Group claims the injunction was based on false statements and has filed motions to lift the restrictions. CEO Roger James hamilton said thay never expected a U.S. court to restrict their financial decisions. The court order has forced genius group to restructure operations, including downsizing and halting sponsorships.The company’s share price has dropped 53%, and its market cap is now at 40% of its Bitcoin Treasury value. The company adopted a bitcoin-first strategy in November 2024. Despite selling some holdings, Genius Group remains committed to Bitcoin.
Genius Group has filed an emergency motion with the U.S. Court of Appeals for the second Circuit to overturn the injunction.The company has faced multiple lawsuits and has been unable to issue share-based compensation to employees, violating Singaporean labour laws.
Genius Group adopted a Bitcoin-first strategy in November 2024. The company has filed an emergency motion to overturn the injunction. The legal battle has led to a 53% drop in share price.
- Genius Group reduced Bitcoin holdings from 440 to 430 BTC.
- The court order has forced the company to restructure its operations.
- Genius Group’s share price has dropped 53% since the restraining order.
Genius Group claims the injunction was based on false statements. Fatbrain AI shareholders have filed a transcript of a meeting with Ritz, alleging a strategy to extract money from Genius Group. The company has filed motions to lift the restrictions.
Genius Group CEO Roger James Hamilton said they did not anticipate such restrictions. The company has been unable to issue share-based compensation to employees.
Genius Group has filed motions to lift the restrictions and submitted a transcript of a meeting with Ritz, alleging he detailed a strategy to use the court order to extract money from Genius Group.
